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The Scottish Housing Regulator has stepped in at an association over concerns about “serious misconduct and mismanagement”.
The regulator has suspended a member of Dalmuir Park Housing Association’s (DPHA) management committee and appointed a manager and six members to the management committee after an independent investigation uncovered “serious governance failures”.
Earlier this year the regulator discovered a number of governance issues at the 689-home association. DPHA agreed to carry out an independent investigation but there were “setbacks” in taking this forward “due to the number of governing body members who were compromised by conflicts of interest, the association’s failure to comply with its constitution in relation to governing body membership, and a delay in taking forward its decision to co-opt independent governing body members”, the regulator said.
In November, the independent investigation found evidence of serious governance failures at DPHA, including failures to understand and comply with DPHA’s constitutional requirements, “serious allegations” of breaches of the association’s code of conduct for staff and governing body members, failure to manage conflicts of interest, and failure to seek independent advice to inform important decisions.
The regulator said the association’s business plan was “not consistent with our recommended practice on business planning” and it did not provide the “necessary assurance” about its objectives and how it will deliver them.
DPHA has recently commissioned a second independent investigation after it identified allegations of potentially serious breaches of the code of conduct for staff and governing body members.
Christine Macleod, director of regulation (governance and performance) at the Scottish Housing Regulator, said: “The investigation found evidence of serious misconduct and mismanagement at Dalmuir Park. So we need to use our statutory powers to protect tenants’ interests and ensure that Dalmuir Park complies with regulatory standards.
“We have directed the manager to address any immediate risks to the association and to carry out a strategic review to look at the best solutions for Dalmuir Park’s tenants and service users in the longer term.”
Marion Birnie, acting chair at DPHA, said: “The association is co-operating fully with these changes and we will be working positively with the regulator and the new committee members to address the issues identified so we can continue to protect the best interests of our tenants and the long-term interests of the association”.
“The day-to-day provision of housing and care services by the experienced staff team at DPHA will continue as normal and our focus will continue to be on serving our tenants and the wider community.”