Credit union writes off value of €450k lease

Mallow Credit Union has written off the full value of a controversial lease it signed with Co Cork VEC, which is now being probed by the Comptroller and Auditor General.

The move reflects Co Cork VEC’s decision not to draw down a €200,000 loan it had arranged without informing the Department of Education to cover a shortfall in the construction of a €1m grant-funded creche.

Mallow Credit Union is not the subject of the inquiry. However, CCVEC’s practices in using the lease in lieu of unauthorised borrowing to build the loss-making childcare facility is.