You are viewing 1 of your 1 free articles
Regulator appoints manager after ‘serious misconduct’ at housing association
The Scottish Housing Regulator has appointed a manager to take control of a housing association which it has slammed for “potential serious misconduct” and “systemic failures of governance”.
Fairfield Housing Co-operative has been the subject of an investigation by the regulator since March, due to concerns about the size of its development programme and the impact of this on the organisation.
In a statement today, it said this investigation has revealed “a number of areas of serious concern” including “the inappropriate receipt of payments and benefits” at the 514-home landlord based in Perth and Kinross.
READ MORE
It has therefore taken the highly unusual step of appointing a manager and seven governing body members to “safeguard the interests of tenants and services”.
Ian Brennan, director of the regulator, said: “We have used our statutory powers to protect the interests of tenants and service users and to safeguard the reputation of the sector. In our judgement, Fairfield is not complying with the Regulatory Standards of Governance and Financial Management. There are serious and widespread compliance failures across all six standards.”
In a regulation plan today, the regulator said the landlord “has been unable to provide us with the business planning assurance we require”.
It commissioned an independent investigation into “serious allegations of potential misconduct and mismanagement” in July, following the regulator’s intervention. It was this investigation which uncovered the “inappropriate receipt of payments and benefits”.
The plan added that this investigation found there were “widespread failures to comply with Fairfield’s policies, procedures, financial regulations and delegated authorities for spending”.
“It also found that there had been poor procurement practices, failures to manage conflicts of interest and to uphold the standards of conduct expected of [housing associations],” the report added. “These governance failures have contributed to the potential inappropriate use of Fairfield’s funds and resources.”
The organisation “does not have the management and leadership capacity to address the serious issues and risks it is now facing”, the report said. It said the failings pose “an immediate threat to the interests of tenants and the reputation of [housing associations]”.
The manager and seven members have been appointed for a period of six months.
The organisation, first registered in 1988, is organised as a fully mutual co-operative. It turns over £2.12m, has debts of £16,316 per unit of housing and currently employs 11 people.
Fairfield did not respond to a request for comment.
