UNDER-FIRE CREDIT UNION 'HAD FAKE LOANS AND TWO SETS OF DEPOSIT BOOKS' - The credit union at the centre of a fraud allegation had fake loans and two sets of deposit books.
Rush Credit Union is now under investigation by the gardaí and forensic accountants appointed by the board of Rush Credit Union, on the advice of the Central Bank. The revelations come as pressure mounts on smaller credit unions from the Central Bank to merge with stronger ones. Up to 40 credit unions across the country are resisting attempts to join forces with others to create greater scale in the movement. The renewed focus on mergers came as it emerged that the north County Dublin credit union at the centre of a fraud allegation is being probed over false loans and the disappearance of members' deposits. It is understood that forensic accountants from Grant Thornton appointed by the board of Rush Credit Union have uncovered evidence that fake loans were created on the accounts of members. It is also believed there are no records of some deposits taken from members, says the Irish Independent. The disappearance of the deposit money, and the existence of irregular loans, have prompted the credit union to write to its 10,000 members asking them to confirm their loan and savings balances.
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BROADBAND USERS FACE PRICE INCREASE OF 18% - Consumers can expect an 18% hike in broadband prices from next September as a result of changes to Eir’s wholesale rates.
The State’s largest telco rents space on its network to rival operators such as Vodafone, BT, Magnet and Sky, as well as its own retail arm. From September, it plans to raise fibre broadband prices for wholesale customers from €19.50 to €23 a month. Non-Eir operators have signalled the hike, which has been approved by regulator Comreg, would be passed on in full to consumers, says the Irish Times. Eir, however, said the rate increase, when combined with a €2.11 reduction in its traditional fixed-line rental rates due in July, was broadly price neutral, and therefore did not necessitate a price rise at the retail end. The assertion was disputed by rivals, which claimed the two price changes related to different product sets and could not be used to offset each other. Alto, the umbrella group for non-Eir companies, described Eir’s move as “cynical”, claiming it bore no relation to the costs associated with providing the service. “With improved efficiencies and economies of scale, the costs should actually be decreasing,” Alto spokesman Ronan Lupton said.
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CONROY GOLD AND NATURAL RESOURCES' SHARES SURGE AS IT EYES LARGER GOLD RESERVES - Conroy Gold and Natural Resources, the Dublin-based prospecting firm, is to begin looking for joint venture partners to develop its assets in the border counties, says the Irish Examiner.
In a brief operational update, which boosted its share price, the company yesterday said that it has commenced a fresh drilling programme at its Glenish licence in Co Monaghan, which will be closely followed by additional drilling activity at its headline prospects at Clontibret in Co Monaghan and Clay Lake in Co Armagh. An independent study has put combined estimated resources for Clontibret and Clay Lake at 5m ounces of gold, understood to be around five times previous targets. Chairman Richard Conroy said that while the company was originally planning separate mine developments at Clontibret and Clay Lake, it may now consider one mining complex - inclusive of one or more mines and numerous processing plants - to cover both projects. The cost of developing Ireland’s first commercial gold mine would likely top €45m and Prof Conroy said the company would now be looking at bringing on board a joint-venture partner to progress the project whatever route it takes.
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MORGAN STANLEY TO OFFER PAID SABBATICALS TO RETAIN VPs - Morgan Stanley is wooing its investment bankers by introducing paid sabbaticals for newly-promoted vice-presidents and making earlier job offers to those at the start of their careers.
The Wall Street bank’s initiatives come as lenders on both sides of the Atlantic explore more creative ways to discourage talented staff from defecting to more fashionable industries such as technology and hedge funds, writes the Financial Times. A person at Morgan Stanley said the bank had recently unveiled the four-week sabbaticals for vice-presidents (VP) and that the reaction so far had been “very positive”. Morgan Stanley declined to make an official comment. It typically takes about five years of long hours to reach VP level, where bankers usually earn more than $150,000 a year. The Morgan Stanley banker said the sabbatical scheme would be monitored to make sure staff did not think that they would be perceived as “weak” for taking time out. In another strategy to keep staff, the bank will talk to analysts about their job prospects in November this year - three months earlier than the usual performance review. “We (will) communicate to people earlier in their careers that they have significant runway at Morgan Stanley, that we want them to stay,” the banker said.
