Ex-MEP to quit his credit union role

Mr McGowan is leaving after Leeds City Credit Union (LCCU) posted a small surplus of £4,000 in its latest accounts only three years after requiring an emergency £4m bailout after mismanagement under former chief executive Sue Davenport which prompted a police inquiry.

LCCU, England’s largest credit union with around 25,000 members, only survived the discovery of hidden bad debts with financial support from Leeds Council and the Department for Work and Pensions in 2009.

A West Yorkshire Police inquiry into Mrs Davenport’s activities as chief executive prior to her resignation in 2008 is ongoing. LCCU called the police in after accounts compiled for the end of the 2008 financial year revealed around £2m of so-called “toxic debt” which had previously gone unreported.

Announcing his departure to LCCU’s annual general meeting, Mr McGowan said: “I am pleased to report we have made progress the during the year and compared with three years ago in 2008 when we made a loss of £2.5m we have made a surplus for the year ending 30 September 2011.

“To move from the very edge of the precipice to producing a surplus, to balance our books and move from the red into the black, is an achievement. From a loss of £2.5m to achieve a surplus, even a modest surplus, is a success and I wish to congratulate our staff and directors for their efforts and dedication.”

He said there had been radical changes at the credit union and the board had been strengthened with a good spread of skills and experience.

“I believe this is an appropriate time for me to step aside as president, and as part of improving governance I have been a strong advocate of a healthy turnover of directors and officers.”