28 July 2006
Poor governance is the main reason why social landlords run into trouble and are placed under Housing Corporation supervision, says a report.
The study of 19 failing housing associations, commissioned by the corporation, says board members should be ready to challenge executive decisions and ask for evidence when they receive reassurances.
Boards must be willing to appraise their own performance, as well as that of chief executives, and if necessary take tough decisions, including finding replacements.
With the best of intentions, published on July 21, is the third corporation report into registered social landlords placed under supervision. Some ran into trouble due to financial weaknesses or personality conflicts. In all but two cases, the corporation appointed extra board members. No association is identified in the report.
Consultant James Tickell, who co-wrote the report, said it showed how the interest of tenants, lenders and the public purse were being protected. 'Supervision is the real sharp end of regulation and here we see the regulator at its best,' he added.
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