A Garda investigation is underway into claims of €500,000 worth of financial irregularities at the West Clare Early Years Centres which closed over the weekend.
Deatails emerged at an emergency meeting in Kilrush last night attended by around 500 people.
Around 500 members of the community, staff, public representatives and representatives from Pobal attended last night's meeting in Kilrush.
In a statement read to those present, the Department of Children and Youth Affairs said it received correspondance from the Board of West Clare Early Years and Education Services in December 2014, detailing apparent financial irregularities in the Managment of childcare funding programmes in the centre.
An audit was carried out by Pobal and a final report submitted in November last, found "significant governance issues and an amount of over-claimed childcare funding totalling approximately €500,000".
The final report was referred to An Garda Síochána and its Beuraeu of Fraud Investigation and the Office of the Director of Corporate Enforcement.
The Department and Pobal say they remain committed to working with the community and local agencies to find a resolution to the issue.
Speaking after the meeting, Barry Copley, who is one of 53 staff members to lose their jobs, has told Clare FM of the impact the closure is having on him.

