Credit union board tenure in doubt

A CREDIT union board of directors that refused to resign against members’ wishes face a second threat to their positions in three months’ time.

Members of Gurranabraher Credit Union in Cork city passed a motion of no confidence in the board on Monday night followed by a second motion calling for the removal of all directors. A motion of no confidence in the supervisory committee was also passed at the AGM. However, the board was able to withstand the challenge because credit union law requires a special general meeting for the purpose of removing either directors or members of the supervisory committee. It also requires that the credit union secretary gives written notice of the motion to the director/s concerned 21 days

before the date of the SGM.

Yesterday, board chairman Con O’Leary said the board would not step down because it was involved in

delicate work that needed to be

completed. The credit union, which has 15,000 members and assets of more than 60m, has been the subject of investigation by the Registrar of Friendly Societies, Noel Martin Sisk, for almost three years and more recently, certain accounts are being looked at by the Garda Fraud Squad.

Previous investigations by the registrar revealed abuse of expenses; 8,888 spent on a weekend away for a number of officials and poor

investment practices.

Just before Christmas, the board fired manager Alec Good and deputy manager Patricia O’Neill, claiming they had failed to co-operate with an investigation into a number of issues relating to the management of the credit union. Both are mounting a High Court challenge to their

dismissal. At Monday’s AGM, members were told that experts brought in to oversee an organisational and financial review of the credit union had cost 291,329 in consultancy fees, with one human resource specialist

receiving 1,000 a day.

Members calling for the resignation of the board criticised the spend on experts and the board’s decision to contract Casey Communications to communicate with the media. They were also critical of the board’s use of an outside firm for legal advice in its case against Mr Good and Ms O’Neill, at a cost of 11,000, instead of its own solicitor, Finbarr Murphy

However, Mr Murphy said he could not get involved in the human resource conflict because “I have a potential conflict of interest. I have a high regard for Alec and Pat and I had no intention of getting involved in disciplinary action against them.”

It is understood at least three cases are pending against the credit union. Yesterday, Frank Cannon, the proposer of the motion to remove the board, criticised the board’s failure to abide by what he described as a democratic decision by the members.

He will now concentrate on making moves to arrange the SGM and circulate the motions. The SGM will take place in three months’ time.

Those facing a challenge to their board memberships are Con O’Leary; Michael O’Leary; Teresa O’Sullivan; Catherine Coleman; Maureen Rabone O’Donnell; Brian Gould; Adrian Coleman; Kieran Ahern, and Catherine O’Connell.