Former area manager investigated over money movements

A FORMER area manager at Leeds City Credit Union is being investigated by the police after allegedly making irregular money transfers and obtaining loans without proper authorisation.

Beverley Farmer was sacked last April and the matter were referred to West Yorkshire Police who have confirmed an investigation is ongoing.

Details of Ms Farmer's alleged activities are included in a resignation letter from LCCU company secretary Terry Jacques who believes they provide an example of a continuing failure of management control at the credit union.

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The letter alleges that between April 2007 and December 2008, Ms Farmer "made a number of (irregular) money transfers" and set up a number of loans which were "improperly authorised."

The letter goes on: "The current management team only became aware.... in January 2009 after a member raised an account query. Beverly Farmer failed to attend a disciplinary hearing on 1st April 2009 and she was then dismissed for gross misconduct."

Mr Jacques alleges Ms Farmer "was able to transfer funds between member accounts without authorisation" and "set up loans without the relevant paperwork." He also says she was able to arrange unsecured loans totalling just over 33,000 "in breach of board policy".

Mr Jacques' letter says: "The chief executive has not reported to the board how and why it was possible for this ... to go undetected for so long and was only discovered after a member raised an account query. Had the member not raised an account query, this.... may have remained undiscovered.

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"The board has not been told why the credit union's control systems and procedures failed so miserably; why LCCU rules, loan policy and conflict of interest rules were not implemented; why the senior management team and the internal audit function failed to detect this ... and, most importantly, why LCCU management and financial controls proved so defective."

LCCU declined to comment on Ms Farmer.

A police spokeswoman said: "West Yorkshire Police can confirm that an investigation is under way after information was passed to police relating to alleged fraudulent activities at Leeds City Credit Union."

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