Limerick Waste Recycling Ltd had been paid hundreds of thousands of euro in advance by up to 3,000 customers for a service they will not now get.
There is no hope of recovering any of the money as the liquidator said customers are unsecured creditors.
Mr Scully said he had serious concerns about the behaviour of Limerick Waste Recycling in taking money from members of the public the day before the company announced its closure.
He said: “I have been contacted by a great many people, who are angry at the way they have been treated. The question that needs to be answered is this: were the directors of Limerick Waste Recycling aware when they took money from Limerick people last week that they would not be providing the service for which they were being paid? In other words did they knowingly enter a contract they had no intention of honouring?”
He said if this was so, the matter should be subject to criminal investigation.
Limerick Waste Recycling, based in Galvone Industrial Estate, went into liquidation with debts running into millions of euro.
Limerick City Council said that people will have to find a replacement service provider and this was not a matter for the council.
Accountant Pat Roche of PriceWaterhouseCoopers was appointed provisional liquidator by the High Court last Wednesday.
He said: “I appreciate this situation will greatly inconvenience customers. However, no other course of action is possible. Persons who have paid in advance for bin services will rank as unsecured creditors in the winding up. I am endeavouring to sell the business and assets of the company.”
Mr Scully said he feared a pattern of companies going into liquidation leaving customers who have paid money in advance high and dry.
He said: “We have seen instances of this in Limerick and Cork, where members of the public have been left out of pocket.”
* Contact Cllr Diarmuid Scully by email at email@example.com