Jersey Mutual has updated its 9,250 members this week ahead of the society’s AGM on Friday.
In a letter to members, Jersey Mutual said that the allegation of ‘irregular accounting activity’ was in the hands of the States of Jersey Police’s Joint Financial Crimes Unit, the body which tackles economic crime.
Jersey Mutual members were first informed in November 2018 of ‘potential fraudulent activity’ that had occurred over a number of years. Provision for a sum of £343,000 relating to the activity under investigation was made in the society’s accounts for the year ending 30 September 2018.
A civil claim has been issued by Jersey Mutual in the Royal Court, the letter explained, however this claim was waiting to proceed while the criminal investigation continued.
The statement added: ‘We continue to work with and take advice from our legal and financial advisers in order that we maximise any recovery, while balancing the costs of any legal action against any assets that may be available to repay the society.
‘Neither the society’s solvency nor any of the members’ policies have been affected – the society remains in a strong, safe position as we look to serve our community in the future.’
Speaking to the JEP, General Manager Shaun Kavanagh said that the society was unable to comment further while the matter was being investigated.
‘We want to deal with this transparently, which is why we have provided an update to our members ahead of the annual meeting, but we can’t make any comment that might prejudice the ongoing investigation,’ he said.
