Credit union system has lost its values

In the late 1980s I became involved in the setting up of a new credit union in an inner city area where I lived.

During the initial training I recall expressing concern about the responsible nature of managing the money of people in my community. Some reassurance was offered by reminding me of the checks and balances in place within the organisation including the supervisory, credit and management committees. Borrowing should never exceed a certain percentage of one’s shares — I think it was twice one’s shares. There were also clear rules about the maximum that could be borrowed by any one individual.

It was such an empowering organisation for working class communities with limited means. I am still a member of my local credit union and feel very devastated and a bit disillusioned by recent news headlines about credit unions and millions of euro of loans.

What happened to the checks and balances? Where was the supervisor, credit and management committees? And was the rule book ripped up? It is unforgivable that such a visionary, practical and community-based organisation which was originally set up for the benefit of those with limited means should have lost its values and dimmed its light.

The question is — was that due to greed, poor management or the lack of moral courage at either local or national level?

Mary Shanahan

Ballyheigue

Co Kerry