herald

Saturday 10 December 2016

Cash scandal credit union employee won a car in 'rigged draw'

Rush credit union
Rush credit union

A senior employee of a Dublin credit union at the centre of a cash scandal won a car in a suspected rigged draw.

Rush Credit Union is being investigated by gardai over €700,000 that cannot be accounted for.

During the course of the probe, concerns were flagged over the annual draw, which has been run for a number of years.

Fears that it was rigged meant that €400,000 had to be refunded, with everyone who entered the draw entitled to have their money put back into their account.

The money was refunded for the draws between 2009 and 2014.

It is understood that a staff member won the car in at least one draw, but detail of what car was won or in what year were not clear.

The investigations, including a Grant Thornton review, have found that the amount missing could be as much as €1.5m.

The Central Bank moved last night to reassure customers of Rush Credit Union that no one will lose their savings.

Current laws mean that individual savers in credit unions are insured for up to €100,000 under a statutory guarantee scheme.

No one in Rush has more than €100,000 in their savings account.

The previous manager of the credit union, Anne Butterly, was suspended from holding a position as a manager in any financial institution.

Resigned

She was temporarily suspended from her position at Rush Credit Union by the Central Bank in June.

Now it has also emerged that acting chairman Gerry Foley has resigned.

A spokeswoman for the Irish League of Credit Unions said: "The acting chairperson tendered his resignation citing personal circumstances as the reason for doing so.

"The board and management of the credit union are working through the Grant Thornton recommendations and have dealt with the affected members.

"The credit union is fully insured and is dealing with its insurance company in relation to this matter."

It is understood no one has been charged with any offence in relation to the financial irregularities at the credit union.

It previously emerged that investigators uncovered evid- ence that fake loans were created on the accounts of members.

It is also believed there are no records of some deposits taken from members.

The disappearance of the deposit money and the existence of irregular loans have prompted the credit union to write to its 10,000 members, asking them to confirm their loan and savings balances.

This is because the credit union is unsure of the exact value of deposits held by a number of members, and how much members owe.

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