Thursday, 09 February 2012

Ujima chief’s employment tribunal hears claims of unfair dismissal

Regulator ‘abused power’, says Kerr

The former head of collapsed landlord Ujima Housing Association was sacked because the Housing Corporation abused its regulatory powers, he has alleged.

This claim was central to a two-week employment tribunal last month in which Keith Kerr alleged he had been unfairly dismissed and suffered racial discrimination at the hands of London & Quadrant Housing Trust.

Mr Kerr was dismissed for gross misconduct after he was suspended from his post at Ujima in November 2007. Ujima had been placed under supervision by the corporation weeks before the suspension. London & Quadrant was handed control of Ujima and its assets in 2008.

Mr Kerr had originally wanted to make separate claims against the corporation and Ujima’s lawyers Devonshires. These were later withdrawn.
His lawyer, Lawrence Davies, head of Equal Justice Solicitors, said the case was ‘primarily a case of unfair dismissal for being dismissed for gross misconduct’.

‘The substantial argument was not just unfair dismissal but that he had whistleblown to Sir John Bourn [the comptroller and auditor general].’

A letter sent by Mr Kerr to Mr Bourn’s office in November 2007 said he had been instructed by his Ujima board to ‘formally submit a complaint to be investigated for the abuse of power of the Housing Corporation’.

The board claimed that the corporation was ‘acting ultra vires [beyond its powers] by using draconian powers to marginalise the legitimately constituted board and its members’.

The association had ruled out bringing a judicial review because the £100,000 cost was prohibitive, the November letter states. The next month, Ujima became the first housing association to become insolvent, triggering an inquiry into the corporation’s handling of the case.

The Tenant Services Authority, which took over the corporation’s role last year, declined to comment. A spokesperson for L&Q said it was unable to comment until a judgement had been reached.

An official inquiry into the collapse of Ujima raised questions about how well the association had been run and why the scale of its problems were undetected for so long.

The employment tribunal is due to report in around five weeks.

Readers' comments (1)

  • One of the excuses given to tenants that our Housing association would cease to exist was a research by the Housing Corporation concluding that Ujima was providing a poor services to tenants. I wonder what would be the result if they asked the same questions to the same people that are now L&Q tenants.

    The process to select and transfer of assets to L&Q was rushed and without transparency. Many board members and tenants representatives voted for another solution, but the Housing Corporation abused its power and omnipotently decided in any way that did not bring any benefit to tenants.

    I wish good luck of Keith Kerr

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