The former general secretary of the Irish League of Credit Unions, Mr Tony Smyth, yesterday said allegations made in an email sent to him were "without foundation".

He also said he would pursue the writer of the email "and the Garda authorities will be involved".

Mr Smyth said he had received the email two weeks ago.

It is believed to refer to personal and business matters.

Claiming he had been threatened in the email, he stepped down from the league's board moments after he was elected onto it on Sunday.

Though he was general secretary until his resignation in January, Mr Smyth was not a board member until the election on Sunday.

He said: "Any of the suggestions that were in the email were absolutely outrageous. I think this is quite distressing and not only for myself. When it starts involving your family and out from that your career, it gets hairy."

Asked what action he planned to take, he added: "I will take a course of action and follow it through to its logical conclusion. I would like to finalise it and pursue it to the nth degree. Whatever is required will be done."

Mr Smyth's resignation as general secretary followed a disastrous investment in an integrated computer system for the movement's 535 branches.

The project was abandoned after a €34 million write-off from the league's accounts last year. Mr Smyth had been on secondment from the Department of Finance.

Following his resignation, by mutual agreement with the board, he returned to the Department. With a report on the movement by consultant Mr Phil Flynn containing strong criticism of the board and its procedures, a number of member credit unions are on the brink of leaving the organisation.

Certain informed people believe tension in the league is akin to "civil war" although figures who attended a presentation Mr Flynn made to the a.g.m. believed the meeting was positive.

Delegates and board members were said to be very surprised when Mr Smyth told the meeting that he could not take his place on the board.

Referring to the email, Mr Smyth said: "It is so untypical of the credit union movement, not that you wouldn't have hard arguments.

"I don't think that it is part of the movement that I worked to and signed up to."

Asked about the contents of the email, he said: "There's no substance whatsoever. That's not just a matter of opinion, it's a matter of fact."

The Irish League of Credit Unions meets on June 9th in Dublin for a specific discussion on the recommendations contained in Mr Flynn's report.

His report noted concern among certain credit unions that the recommendations would not be implemented in full.

The league's newly elected president, Mr John O'Regan, has said there is a "clear need" for transparency and accountability to build up the appropriate levels of trust in the movement.

His predecessor, Mr Jim McMahon, yesterday said: "The board is absolutely disgusted by this. It's not representative. I hope the person can be traced and dealt with."