Who is authorising credit union investments?

THE Credit Union has been getting involved in serious stock market speculation as their annual accounts show.

Huge sums of money have been gambled and lost. Seven figure sums have now been “invested” by credit unions and many of those investments seemed to have turned sour.

Some of these ventures have become so toxic that they have been listed on balance sheets as having been “disposed of”.

The sums are shocking when compared with individual credit union income which can only be a tiny fraction of the risky ventures made.

However, by far the most troubling matter of all is where the authorisation has come from for level of investment and speculation.

These “investment decisions” seem to be made by management, not members who are unaware of any investment decisions made until their credit unions produce their annual accounts.

The credit union seems to be getting involved in high-risk investments that are more suitable to a bank needing recapitalisation and ongoing supervision.

The nature of the credit union movement has changed from a far-sighted and prudent institution to one of myopia and unnecessary risk-taking.

It is getting more difficult to see how the credit unions’ claim that “members’ interests come first” is been fully lived up to.

Maurice Fitzgerald

Shanbally

Co Cork