FERMOY, County Cork, Ireland–Investigations are underway at two Irish credit unions here over alleged embezzlements.
Synergy Credit Union here said “irregularities” discovered during a 2016 internal review indicate “unauthorized transactions” led to more €400,000 being removed from member accounts. All missing money has since been “replenished” in those same accounts, the credit union said.
The gardaí and the Central Bank were informed of the missing funds, and accountancy firm Grant Thornton was commissioned to carry out an independent investigation into the irregularities.
In a statement, Synergy Credit Union said “an individual” had accepted responsibility, and co-operated with the investigation. However, it is unclear if this person is subject to any possible criminal probe, according to local media.
The credit union’s approximately 16,200 members were told of the investigation at the end of the address of chairman Denis Granville that accompanied its recently released annual report for 2016.
Granville said funds had been removed from dozens of accounts amounting to €407,442, and that the cost of investigation and legal fees came to over €160,000.
“I wish to assure you that the board of directors has taken all necessary steps to ensure the matter was fully resolved in a timely manner,” Granville said. “The Central Bank of Ireland and all relevant authorities were immediately notified. The independent investigation, which has been completed, identified a total of 29 member accounts” as having been affected.
No member incurred any losses, Granville said.
Meanwhile, in County Cork, investigators say as much as €200,000 is missing from Gurranabraher Credit Union. The Garda fraud squad is investigating what it called “financial irregularities” at the credit union.
Gurranabraher CU has issued a statement to say its members' deposits will not be affected by the irregularities that have resulted in the dismissal of a staff member. GCU has €96m in assets and 15,000 members.
It is not known for how long the scheme to take the funds took place.