Tuesday 28 March 2017

Worst ever case of a credit union in crisis

Safe used to store cash unrecorded in accounts; Rigged car raffle fears result in customer refunds; Deeds to foreign-based properties found in office

Rush Credit Union where financial irregularities were unearthed. Photo: Mark Condren
Rush Credit Union where financial irregularities were unearthed. Photo: Mark Condren
Charlie Weston

Charlie Weston

The scale of the financial problems at a credit union where financial irregularities were discovered has spiralled to the point where those investigating it now refer to it as the worst case in the country.

Rush Credit Union has been embroiled in controversy since the summer when gardaí were called in to probe the suspected disappearance of €700,000.

It has now emerged that the amount of money suspected to have gone missing is twice that, and the financial accounts are in such poor shape that it could cost up to €5.5m to stabilise it.

The Irish Independent has learned that investigators have discovered a litany of financial flaws.

The probe has found the credit union safe was used to store hundreds of thousands of euro in cash, which was not recorded in the lender's accounts.

Fears over rigged car raffles have also meant that everyone who was entered in the annual car draw has had the money refunded to their accounts.

Deeds to foreign-based properties were also found in the safe and it is not known if they were held as security against loans, or were bought by someone associated with the credit union with money that has gone missing.

Irish Independent

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