Two dismissed credit union executives yesterday lost their High Court application for an interlocutory injunction seeking to prevent Gurranabraher Credit Union, Cork, filling their positions pending a full hearing of the case.
Mr Justice Thomas Smyth also declined to make an order which would have ensured that the two plaintiffs be paid in the interim period before a full hearing of the case, which will begin on October 21st.
In January, a temporary injunction had been granted to the former branch manager, Mr Alec Good, Hillcourt, Donnybrook, Douglas, Cork, and his former deputy, Ms Patricia O'Neill, Presentation Road, Gurranabraher.
It was submitted by counsel for the plaintiffs that they had headed the branch with an annual turnover of €150 million and had been dismissed on December 17th last after "certain difficulties" had arisen within the branch and that both had been wronged by the board in a number of respects.
During the four-day hearing of the injunction proceedings last week, it was also stated that barrister Ms Ann O'Brien had investigated complaints against the two executives by nine staff members. She upheld complaints of unprofessional conduct regarding some, but not all, of the complaints.
Both plaintiffs responded they were shocked at the complaints of staff members. They felt all the complaints were untrue and believed all staff got on very well together, with many social outings that everyone enjoyed.
At last week's hearing, Mr Good stated in an affidavit that he had not approved loans totalling €1,187, 684 for which there were no authorised signatures on the loan applications.
In relation to a separate loan of €127,000 granted to a borrower to buy a shampoo business in Australia on July 26th, 2001, Dr John O'Mahony SC, for the plaintiffs, produced a letter from the Garda Fraud Squad to the effect that Det Sgt Edmond Fogarty was of the view that the granting of the loan was correct and did not amount to a serious breach of the rules and regulations of the credit union and had been approved by the board of directors.
In a statement yesterday, the credit union said it welcomed the High Court's decision as it would allow them to proceed immediately with the appointment of full-time, professional senior staff and to the establishment of new organisational structures within the credit union.
It added: "Clearly the necessity of retaining consultants to manage the credit union, which was forced on us by the injunction now lifted by the High Court, will no longer apply and we will move quickly to their replacement."
