Corporation 'over cautious' in regulation of Ujima

The report into the demise of Ujima Housing Association says the corporation was ‘over-cautious’ and could have intervened more effectively once concerns about the association first surfaced in 2006.

If it had done so, the report says, ‘it is possible that Ujima might have been able to avoid insolvency, or at least have had more time in which to exercise choice and consult with its tenants and stakeholders in reaching a solution to its problems’.

Ujima was put into supervision by the corporation in October last year, before becoming insolvent and then being taken over by London & Quadrant Housing Group in January this year.

The report said Ujima’s collapse was the result of ‘bad management and an ineffective board’ at the association.

Speaking at the launch of the report, Simon Braid, head of KPMG’s UK charity practice, who chaired the inquiry, said the corporation had found regulating Ujima ‘extremely difficult’, in the face of an ‘unco-operative and increasing belligerent’ Ujima. The corporation’s regulatory approach relied on a more co-operative approach.

‘The way in which regulation worked was not fit for such a purpose,’ Mr Braid said.

Corporation chief executive Steve Douglas said: ‘We do acknowledge that in our approach to regulation we were over-cautious. The failure of Ujima however – and this is confirmed in the report – was down to Ujima’s management and its leadership.’

Corporation chair Peter Dixon said the corporation was not looking to blame individual staff for the failings. ‘We are looking to learn lessons for the future. If some of the judgements made could have been different that’s not something you sack people for.’

See also:

Blog - Questions remain over Ujima

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