The Central Bank has confirmed that it will seek the removal of a long-standing gagging order against itself and the former directors of Newbridge Credit Union (NCU) at the High Court this week, in order to expose the full details of NCU’s demise.
The gagging order was placed on all parties involved by the High Court after a special manager was appointed to run the credit union in January 2012.
If granted, the Central Bank will publish in full the special manager’s report and other confidential information on the process that lead to the transfer of NCU’s business to Permanent TSB.
The transfer was made in an evening High Court sitting on Sunday November 10.
Meanwhile, NCU’s Moorefield Road building, for which a bid of €3.9 million has recently been received, will be sold in the future to pay back a fraction of the €54 million bailout costs.
And plans by the former directors of the now defunct Newbridge Credit Union to appeal the High Court transfer order of assets and liabilities to Permanent TSB, will now have been dashed, as according to the Central Bank, the transfer cannot be undone.
“They can apply to have some sort of remedy,” said Nicola Faulkner, with the Central Bank. “But the transfer cannot be undone.”
The Central Bank has acknowledged, however, the “demand for the services of a credit union in Newbridge” and as a result it is currently examining the extension of the common bond area of existing credit unions to the town. However, it refused to comment on the recent speculation that a sub office of Tullamore Credit Union would open in the town by Christmas.
Meanwhile, all services to former NCU members, now PTSB customers, including savings and lending facilities, continue to be available at the NCU building for the foreseeable future.
“Last week started with more uncertainty than answers,” said Niall O’Grady of PTSB. “Since then, the members have been reassured by the fact that products remain unchanged, a special dividend is forthcoming and we are working with staff to agree the best way forward.”