Efforts are under way by communities in west Clare to try to find a way to reopen a number of childcare centres that have been closed recently.
The Senior Director of Pobal, the agency which funds the services, has said an audit into childcare services in the region began in late 2014.
On completion recently it found there was a significant amount of over claims on State resources (over €500,000), which was accepted by West Clare Early Years Care and Education Services.
The company employ about 50 people across a number of locations, including Kilrush, Kildysart, Kilkee, Kilmihil and Lisseycassey.
Speaking on RTÉ’s Morning Ireland, Jerry Murphy of Pobal said the situation is under Garda investigation so he cannot comment too much.
He said following a meeting last week, the company was meant to provide Pobal with a plan to explain how it would allow the company to continue, amend its governance and reimburse the State.
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