DESPITE being a member of the Bermuda Industrial Union throughout his working life, political activist Raymond Russell (pictured above) has become increasingly disillusioned with the organisation - and gone public with his concerns.

In a Mid-Ocean News interview three years ago, he claimed that, "in any other country all the union officers would be investigated, given the financial situation of the union".

He has repeatedly questioned why so much of the BIU's annual multi-million dollar income is spent on administrative costs and salaries - while paying out only a fraction of its revenue to members in the form sickness and unemployment benefits.

And this week he turned his sights on the BIU's Members Credit Union - the organisation set up to act as a 'bank' for BIU members to keep their savings and take out loans at supposedly knock-down rates of interest.

Mr. Russell maintained that, up until recently, rank and file members received no interest on any cash they deposited with the Credit Union - but had to pay up to 17 per cent interest on any loan they took out.

And he also revealed that a Progressive Labour Party Parliamentary candidate was given a far more favourable rate of interest on a loan, even though he had only just signed up with the BIU.

Leopold Kuchler ran unsuccessfully for the PLP in the 2003 General Election.

But Credit Union records show that in 2001 Mr. Kuchler took out a loan of more than $200,000 - at a reduced interest rate of nine per cent.

"That was a political arrangement," Mr. Russell said.

"I'm not saying anything against Mr. Kuchler as a person, but I'm angry at what the Credit Union did.

"Yet the members were paying 15 to 17 per cent. He was a candidate for the PLP. And the Finance Minister has allowed this.

"The Credit Union was established so that members can get loans at an easy rate. That never really occurred. The purpose was to provide members an opportunity to accumulate their savings to create for themselves a source of credit for a productive purpose at a reasonable rate of interest. That never happened. We were getting no interest on the money that we put in there and were paying 15 to 17 per cent on any loan we took out - on our own money.

"And yet some people were paying at a rate of just nine per cent. That can't be right, not when you have everyone else paying 15 per cent. There's a case for the Credit Union to answer here. These people were not even BIU members until they needed the loan. That's not right."

Mr. Russell accused the current administration of maintaining the same policy as the last UBP Government towards the union - turning a blind eye to financial irregularities in a bid to win favour with workers.

"Unfortunately the UBP allowed these guys to do exactly what they wanted so that they could hang on to political power - at the expense of the working members. But something has got to happen. In order for the country to change, the union has to do what's right for the membership."