The secretary general of the Irish League of Credit Unions, Mr Tony Smyth, said last night he had not been informed of any decision to seek the termination of his contract.

Mr Smyth said he had "broadly discussed" what had happened at a board meeting on Saturday with some members of the board, but that it was "business as usual" until he was fully briefed on the situation.

According to sources, the board discussed Mr Smyth's position in the context of the significant overrun which has emerged in relation to the league's new computer system.

The latest estimate is that the system, designed to link the various unions and allow for electronic lodgment and withdrawal of funds by members, will cost in excess of £100 million (€114 million). The original estimate was £68 million. To date £27 million has been spent on the project.

Consultants have said an alternative system might still be possible within the original estimate.