The chairman of Gurranbraher Credit Union in Cork city said last night that he hoped that it had overcome its past difficulties.
Mr Michael O'Connell was addressing the annual general meeting of Gurranabraher, which has an asset base of €65 million and more than 15,000 members. It is one of the State's biggest credit unions.
The branch has been forced to cancel its loan interest rebate to members for 2003 after it was hit with a €1.5 million bill following a High Court action.
The bills are linked to an investigation into allegations made against senior staff who were sacked from their posts.
It also involved a legal challenge by former manager of the credit union Mr Alec Good and deputy manager Ms Patricia O'Neill surrounding their removal from their positions.
Mr O'Connell told members that they have to pay €707,229 in legal fees, €614,456 for consultancy fees and €250,000 in termination payments following a wrongful dismissal action taken by former employees.
"There has been a great deal of emphasis on what was not happening in this credit union in the past. I don't want to revisit in any detail the various deficiencies... but I will say that we are satisfied that this credit union is now implementing 'best practice' in the management of its affairs," he said.
"Internal systems, structures and controls have been considerably strengthened, as has been our policy, regulation of loans, HR policy and the management of documentation," according to Mr O'Connell.
Gurranabraher Credit Union was subject to an investigation by the money-laundering unit of the Garda Bureau of Fraud Investigation. The move followed an investigation of Gurranabraher Credit Union's affairs by accountancy firm Ernst & Young. It had also been investigated by the Registrar of Friendly Societies, the regulator of the credit union sector.
The Ernst & Young investigation discovered evidence that a £100,000 (€127,000) loan was given to a credit union member who held just £100 in his account at the time.
It also emerged that details of another member's account had been forwarded to the money-laundering unit of the Garda Bureau of Fraud Investigation.
Mr O'Connell told members last night that he was happy that the credit union's problems are in the past and the branch can move forward despite a "bruising and difficult year".
"Notwithstanding that, it has been a remarkable year of growth and development, which is a tribute to our members in the first instance and to the staff, management and indeed to the board," Mr O'Connell said.
