A STAFF MEMBER at one Cork credit union has been dismissed after a potential fraud worth up to €200,000 was uncovered at the financial institution.
An internal investigation at Gurranabraher Credit Union led to a complaint to the gardaí and the matter being referred to the Central Bank.
It’s understood that gardaí in Cork are investigating financial irregularities totalling as much as €200,000 at the credit union.
In a statement, the Central Bank said it was “engaged” with Gurranabraher Credit Union “on certain issues” and that the process was ongoing.
The credit union has said it is fully insured and no members have been exposed to losses because of the case.
The latest probe is the second scandal to emerge involving staff at a Cork credit union in less than a week.
Gardaí previously confirmed they were investigating alleged fraud at Synergy Credit Union in Fermoy.
In that case, a reported €400,000 was taken from several members’ accounts. One employee was dismissed over the issues and the credit union said it had returned all accounts to their correct balances.
Both of the Cork institutions said they will continue to operate as normal despite the investigations, which come at a crucial time for the credit union movement.
The organisations have been pushing for an expanded focus to help them tackle minimal returns on members’ deposits.
Small business lending and a more significant role in the Irish mortgage market have both been floated as ways in which credit unions could expand their businesses and provide increased competition to the major banks.
Repoting by Cliodhna Russell and Peter Bodkin.