Gardaí probe credit union fraud allegation

GARDA investigation is underway into the alleged misappropriation of thousands of euro from a Cork city credit union by a former employee.

Gardaí last night confirmed they are investigating the allegation that an ex-staff member at Gurranabraher Credit Union set up a fictitious account into which funds were channelled for personal use.

The sum of money in question is €24,000.

Gardaí said the misappropriation of funds was “something (that was) going on over a period.”

A statement issued last night by the board of the credit union said the matter had come to light as a result of the pursuit by the board of bad debts. It said the staff member had admitted, via a solicitor, to responsibility for the debt on the account in question. The former employee has since paid back the debt and no longer works at the credit union.

“The gardaí have been informed of the matter,” the statement read.

Chairman of the credit union’s board of directors Michael O’Connell said last night: “The board has made a firm commitment to members that it will pursue all outstanding debts to this credit union and will investigate any account, historical or current, about which there are any concerns.

“I am pleased to say that the policies which have been put in place by the board and implemented by the management team are working. Without these and without new stringent controls that are now in place, it is unlikely this matter would have been discovered,” Mr O’Connell added.

Gurranabraher Credit Union has been in the spotlight for the past five years, ever since the movement’s financial watchdog announced he was investigating its affairs.

Martin Sisk, former registrar of Friendly Societies, found abuse of expenses, deficiencies in internal controls, bullying of staff and investment of members’ money without shopping around.