Garda-probe credit union inspector is back working as a ‘watchdog’

By: Michael O’Farrell 

Investigations Editor

A CREDIT union is believed to have appointed a risk and compliance officer who is being investigated by gardaí in connection with loans for foreign property investments.

Kilmallock Credit Union is understood to have given the position to Matt Heffernan earlier this year.

The chairman of the board of the Co. Limerick credit union is Con O’Brien. The Irish Mail on Sunday featured Mr O’Brien last week attending a Las Vegas junket where he was pictured kissing a Marilyn Monroe lookalike. (https://www.newsscoops.org/?p=1606)

Prior to his post in Kilmallock, Mr Heffernan worked as a field officer for the Irish League of Credit Unions, where he was responsible for auditing credit unions in the southern region. During this time he obtained significant loans from credit unions that he was responsible for monitoring.

One such loan from Berehaven Credit Union – for property in Spain – was jointly in the name of the then manager and treasurer of that institution. Others were for property in Bulgaria and Ireland.

A report carried out by auditors KPMG found that application forms for loans obtained by Mr Heffernan contained some incorrect personal information.

According to the KPMG report, Mr Heffernan’s loans required ‘provisioning’, which means the credit union was forced to put funds aside as it feared they would not be repaid.

The report noted that as an ILCU field officer Mr Heffernan inspected Berehaven credit union in 2007 and 2009 but made no reference to his own loans there. As a result, Mr Heffernan stepped down as a director of the ILCU in April 2013. And because cer-tain loans were in default, Berehaven Credit Union this year obtained a judgment against him.

Meanwhile the Garda press office this week confirmed that an investigation into Mr Heffernan is still active.

After being contacted by a member of Kilmallock Credit Union, the MoS photographed Mr Heffernan leaving the credit union as it closed on Tuesday. When approached, Mr Heffernan denied he was working there.

On Wednesday morning we again photographed Mr Heffernan arriving at the office as the credit union opened at 10am.

Later that day he was again photographed as he accompanied chairman Con O’Brien and two other members to an afternoon meeting at Cork’s Ballyphehane Credit Union. The CEO at Ballyphehane, Mr George Cantwell, said Mr Heffernan attended as part of a group from Kilmallock.

‘We had representatives from Kilmallock attending our credit union to review an IT system,’ he said. . But the MoS has been told that Mr Heffernan – though not a direct employee of the credit union – is fulfilling the role of risk and compliance officer on a self-employed basis.

A Central Bank spokesman – which regulates the sector – said it could not comment on individual credit unions.