Serious problems are still hampering the leadership of the credit union movement, according to a report by an internal review group set up to oversee wide-ranging reforms agreed earlier this year. Arthur Beesley reports
The report, which has been seen by The Irish Times, warns of "anarchy" at board level of the Irish League of Credit Unions (ILCU) if certain directors do not change their behaviour.
It comes five months after the ILCU endorsed a highly critical report prepared by a consultant, Mr Phil Flynn. which described the league's board as "dysfunctional".
The review group's report, which was presented to an ILCU special delegate meeting 12 days ago, says that "little if anything" has changed at board level.
However, the president of ILCU, Mr John O'Regan, has poured cold water on the review, stating yesterday through a spokesman that he was satisfied with the board's work since the reform agenda was adopted last June.
The credit union movement is one of the largest voluntary institutions in the State, holding deposits worth €7.5 billion for 2.6 million members.
But the movement has been riven with dissent and alienation since member unions lost more than €30 million on a bungled computer project two years ago. Amid threats of a split, the league pledged to adopt a reform programme following Mr Flynn's report which stated that the board functioned not as a team but in a "very fractured way".
The review given to the special delegate meeting said the board's difficulties had not ended. "The same failings identified in the report continue to manifest themselves time and time again at the board table," according to the review prepared by an ILCU supervisory committee.
The document said: "Despite the contents of the Review Commission Report and its overwhelming endorsement by the special general meeting in June, little if anything in behaviour has changed at board level."
The supervisory committee is chaired by Mr Liam Kelly. He signed the review with the committee's secretary, Mr Joe Cleere, and another member, Mr David Florida-James.
They stated: "Some members are either unwilling or unable to accept collective responsibility.
"Decisions made at board meetings are the property of the board, and no director has the right to distance themselves from these decisions, otherwise this leads to anarchy."
They continued: "There is also a general difficulty for some directors in differentiating between strategy matters and their long-standing determination to control all aspects of the movement."
But when asked yesterday about the document, Mr Kelly modified his criticism of the board.
"Our criticism is directed at a small minority of directors and not at the board in general, which is working very well," he said through a spokesman. Mr Kelly did not identify the members concerned.
The review in its entirety was positive, Mr Kelly said, and the board was implementing many of Mr Flynn's recommendations.
The league's spokesman said Mr O'Regan believed "the huge volume of work done by the board and league staff was there for all to see.
"As far as he is concerned, the league has turned the corner after a difficult period and has made good progress implementing a series of changes without any significant distractions."
The review said the work of committee implementing change was continuing, and had been supported by the league's staff.