Last week?s confirmation by Finance Minister Paula Cox that her Ministry and the Bermuda Monetary Authority were aware of an unauthorised loan of more than $2 million by the Bermuda Credit Union to Bermuda Industrial union subsidiary Union Asset Holdings Ltd. raises more questions than it answers.

The good news is that Government regulators were aware of the illegal transaction. And the Ministry did take some action in that it assigned a number of officers to investigate the affair. But it is not clear what actions were taken to prevent a repeat of the transaction, nor is it clear whether the Credit Union faced any disciplinary action.

Ms Cox said the Ministry now wants to pass legislation bringing the Credit Union under the direct regulation of the BMA and that is probably right. But it is disturbing that well over a year after the transaction, this has not been done.

There are still unanswered questions about just how UAH, which provided the performance bond to Pro-Active Management Systems Ltd. for the construction of the new secondary school, used the money.

Was it to provide security for the bond? Or was it used to provide ongoing financing to Pro-Active? It is know that UAH is owed $4 million by Pro-Active, but where that money came from remains a complete mystery. The union refuses to say, and because it continues to fail to provide accounts to the Registrar General as required by the law, no one else knows either.

This is worrying because the union constitution clearly defines precisely how union funds are to be controlled, with specific parts of members? dues assigned to retirement funds, sick funds, strike funds and so on. Members of the union have a right to know whether these funds are being managed as required by their own constitution.