Some 639 loans totalling €1.18 million appeared to have been issued from a Cork credit union in a two-year period without written records or authorisations, the High Court was told yesterday.

Mr Alec Good, who was dismissed as manager of Gurranebraher Credit Union last December, said in an affidavit he had not approved the loans. He noted a report by Ernst & Young had stated 639 loans were issued, totalling €1,187,684 for which there were no authorised signatures on the loan application forms as evidence of approval.

Mr Good said that, following a Garda fraud squad inquiry into a separate £100,000 (€127,065) loan, it had been concluded that loan was approved by the credit union board of directors, which was chaired by Mr Con O'Leary.

A letter from the fraud squad was produced in court which stated that Det Sgt Edmond Fogarty was of the view that the granting of loan was correct and did not amount to a serious breach of credit union rules.

Yesterday was the third day of the hearing in which Mr Good of Hillcourt, Donnybrook, Douglas,Cork, and his former deputy manager, Ms Patricia O'Neill, Presentation Road, Cork, are seeking an injunction to stop the credit union filling their posts. They want the injunction to apply pending the determination of their action against the credit union and Mr Con O'Leary.

Ms Theresa O'Sullivan, honorary secretary of the credit union board, stated in another affidavit that, in the two years up to June 20th, 2002, there were 639 loans amounting to €1,187,684 for which there did not appear to be any records or authorisations.

There were 17 other loans that were not properly authorised by the credit committee and there were records of eight loans paid to accounts or sub-accounts where there were no savings or where the savings were lodged after the payment of the loan.

There were also 35 loans paid out that were recorded as being authorised by staff members who had no authority to do so.

Mr Good said that he had not been paid since he was dismissed.

Mr Mark Connaughton SC, for Ms O'Neill, said she had been summarily dismissed without notice after 30 years' service. She had not been paid since she had been dismissed.

Counsel asked Mr Justice Smyth for an order that she now be remunerated.

The hearing continues today.