‘Indefinite ban’ on credit union chief at centre of €1.2m probe

THE former manager of a credit union that crashed with a hole of up to €1.2million in its accounts, was yesterday given the Central Bank’s ‘most serious’ punishment over misuse of members’ funds.

Rush Credit Union’s former manager, Anne Butterly, has been barred from carrying out any management functions at any financial institution ‘indefinitely’.

The Central Bank’s head of enforcement investigations, Brenda O’Neill, said: ‘The investigation into Ms Butterly has now concluded with the issue of a prohibition order of indefinite duration, which is the most serious possible outcome to a fitness and probity investigation.’

Ms Butterly could not be contacted for comment yesterday. A staff member at her solicitors, Gerrard L McGowan in Balbriggan, said: ‘Noone’s going to comment on that.’

Rush Credit Union is being investigated by gardaí over hundreds of thousands of euro that cannot be accounted for. During the probe, concerns were flagged over an annual car draw which had been run for a number of years.

A senior employee at the credit union won a car in the draw, but fears that it was rigged meant €400,000 had to be given back to everyone who entered.

Rush Credit Union was taken over by the Progressive Credit Union in February.

The Central Bank said yesterday that ‘fitness and probity’ standards to clean up the sector have not been adopted by all credit unions.

Brenda O’Neill said: ‘While many credit unions have embraced these requirements, the Registry of Credit Union remains concerned to see that changes in culture have not fully embedded in all credit unions.’

A spokesman for the Irish League of Credit Unions said: ‘While any incident like this is very regrettable, the issues at Rush Credit Union were at the extreme end of the scale and are not representative of the movement as a whole.’