For Liam O'Dwyer, former priest now head of the troubled Irish Leagueof Credit Unions, volunteerism is the bedrock of the movement, writesEmmet Oliver.

For a man who heads a movement that has been mired in controversy for the past two years, Liam O'Dwyer looks strangely relaxed. While allegations of junketeering and poor management continue to swirl around the Irish League of Credit Unions (ILCU), Mr O'Dwyer is a tranquil, almost contemplative figure. It comes as no surprise to find he is a former priest

While the modern media demand that organisations in crisis be earnest and contrite, Mr O'Dwyer can see the broader picture and retain at least some perspective.

His CV helps one to understand why he refuses to panic at the continuing difficulties facing the league. He knows about frustration and disappointment and the evidence hangs on his office wall in the shape of a forlorn Manchester City jersey.

Having left the priesthood because of the strict celibacy rules, he knows about having to make painful choices. And as chaplain in Mountjoy Prison during the 1980s he knows about tense and pressurised situations.

He has been present during riots in Mountjoy and, as national director of St Vincent de Paul for the past four years, he has witnessed poverty on Dublin streets that would shock even the most hardened social workers.

In Mountjoy he got to know some of the State's most notorious criminals, but he says most people he came across were very damaged with a lot of baggage.

Whatever assails him during his period at the league, it is unlikely to match the ferocious incidents he witnessed in Mountjoy, including one occasion when prisoners engaged in a mass brawl as he was giving Mass.

This would prepare anyone for a challenging role, but it can reasonably be asked what it has to do with managing money.

Quite a lot, argues Mr O'Dwyer. The ILCU is a voluntary organisation and he believes his experience as national director of St Vincent de Paul (where he managed an annual budget of €25 million) and in human resource management with the Dutch firm, Rotaform, is highly relevant.

As chief executive officer, his job is to harness the energy of the thousands of volunteers which make up the credit union movement. He says the simple idea of people pooling their savings together for mutual benefit remains as relevant as ever. But he makes one point clear - volunteerism is the bedrock of the credit union movement and, while some people may have a problem with that, he certainly does not.

Asked about a forthcoming trip to the World Council of Credit Unions meeting in Brisbane by up to 60 credit union representatives, Mr O'Dwyer strongly defends the plan.

"That forum will be a huge learning experience for the members who go. We need to know what's happening in the US, Australia, Britain, Canada and so on. It is at that type of forum where you learn about excellence and how we can build it up at home."

He says eight ILCU board members are likely to go, paid for by the league. On top of that more than 50 others are likely to make the journey, funded by their own local credit union, he says. Spouses and partners of league directors will also be going, although the league will pay only their air fares, he says.

While this type of thing has angered some credit union members who consider it old-fashioned junketeering, Mr O'Dwyer is clear that such events should be attended by credit union members. He draws the comparison with private-sector organisations which he says would not be slow to send their people to international conferences.

"Let's say 60 go eventually; that is 60 out of a movement of 2.5 million. That is the context," he says.

The expenses claimed by ILCU board members and supervisors have also placed the league, and arguably the wider movement, in an unfavourable light. Last year the 21 board members and supervisors claimed about €230,000 in expenses.

This might not be so embarrassing if the league had not spent (via a subsidiary) the past few years frittering away €35 million on the disastrous IT project, ISIS.

Mr O'Dwyer again is unapologetic about the expenses claimed.

"I would be vociferous on this. These people are all volunteers. They have other jobs. They may be retired, they may be business people, they may be teachers. Last year, they had to attend 20 board meetings.

"It was an exceptional year. But ultimately people cannot end up being out of pocket. Otherwise the only people able to get involved will be well-off people," he says.

The number of board meetings should be cut back to about nine in future, he argues. But he says expenses will still be claimed. "This is a voluntary organisation. The rates claimed are civil services rates. They are for hotels, wear and tear on people's cars, for their meals.

"I find it infuriating when people attack us on this. It is crucial that our volunteers are supported in terms of the travel and work they do."

While some may retain reservations about all this, Mr O'Dwyer says they may misunderstand the league's role. "Each credit union is a limited company. They are only affiliated to us. We are like IBEC in that sense. We cannot tell people what to do. There are rules about being a credit union, but we cannot issue edicts to individual credit unions, it doesn't work like that," he says.

As for the ISIS project which has caused untold damage to the league, not just in terms of the €35 million lost, but also to morale within the wider movement, Mr O'Dwyer cannot say much ahead of this weekend's biennial ILCU conference in Waterford.

It should be noted that he was not involved in the project and only became chief executive before Christmas 2002.

He says 80 per cent of the recommendations made by a review group (set up following ISIS) chaired by trouble-shooter Phil Flynn have been implemented and the organisation will this weekend draw a line under the embarrassing debacle, although some dissident credit unions will not be in attendance.

"The organisation needed to change and it has changed. The old structures are no longer acceptable and we have accepted that. We are now trying to meet the needs of the modern credit union movement. It is important also to be upfront, straight and transparent and we are. But this remains a truly democratic movement."

While Mr O'Dwyer could not discuss the details, it is understood the movement is now likely to drop any legal actions arising out of ISIS and possibly wind up the subsidiary ILCUTECH which handled the project.

This has been demanded by several credit unions which believe the league has lost enough money from the exercise and should simply accept that what is done, is done.

"Of course there is a lot of anger there. It was the members' money, so I understand that. We have had a close look at what happened and we will be suggesting various options to members this weekend. But we have learned from our mistakes and we have set up a national technology committee to make sure IT-related projects in future are handled differently."

Not everyone in the credit union believes a new era has arrived. A group of 12 so-called "dissident" credit unions believes the ILCU needs to go further.

These have taken out their own insurance (which covers a credit union's deposits) and are not permitted to attend this weekend's conference because this is against league rules.

But Mr O'Dwyer is scheduled to meet the 12 and hopes he can convince them to come back on board. "Obviously we don't want people going outside the movement because cohesion is important from everyone's point of view."

He says the league will, in future, tell member credit unions precisely what their annual fees are being used for - how much is for insurance purposes, how much is purely the membership fee and how much goes into the Savings Protection Scheme (SPS), which is there for all member unions if they get into financial trouble.

He says these changes are part of a general opening-up of the organisation and a greater professionalism. "I suppose all voluntary organisations have gone through these changes, just look at the FAI, the GAA. Even in the St Vincent de Paul, we had to change the way we did things, so the credit union movement is not unique in that respect."

He does not accept that the reason for fiascos like ISIS is a lack of expertise in key areas like management and financial control. For example, the league has no outside non-executive directors on its board. "The staff here are very experienced as are our various committees. When we need particular expertise we can generate it outside," he says.