COUNTY DUBLIN, Ireland–Rush Credit Union is investigating suspicions that as much as €700,000, according to the Irish Independent. Federal regulators and other authorities are also involved.
According to the Irish Independent, reserves at Rush Credit Union were reproted to have fallen to around 2% of assets, well below the 10% capital figure required by the Central Bank. Some €1.3 million has been set aside by the Irish League of Credit Unions’ rescue fund, the Savings Protection Fund, to bolster the reserves of Rush Credit Union.
The Independent reported plans are being made to merge Rush CU with Progressive Credit Union, which is four times larger. Rush Credit union has 10,000 members and assets of €25 million.
One problem, according to the Independent, is that the CU’s books are in disarray. The board even contacted members asking them to fill out a form to confirm their balances.
Members have been assured that their funds are protected by the state deposit scheme and by the league's Savings Protection Scheme.
And if fraud is confirmed, the league's insurance scheme will cover the losses, sources told the Independent.
The Independent reported that forensic accountants from Grant Thornton appointed by the board of Rush Credit Union have uncovered evidence that fake loans were created on the accounts of members. It is also believed there are no records of some deposits taken from members. One source told The Independent it is alleged there are two sets of books that were kept.
The publication further reported that the problems at Rush CU have renewed attention on the Central Bank's attempts to encourage smaller credit unions to merge with larger ones.