Regulator steps in at landlord
Inquiry finds catalogue of problems
A housing association that looks after dozens of homes in Rutherglen and Cambuslang has been forced to appoint a manager and three new board members from the Scottish Housing Regulator.
Arklet Housing Association is responsible for 54 homes at Maple Tree Court on West Coats Road, Cambuslang.
They also have 12 two-bed flats at Richmond Place in Rutherglen.
An independent review found Arklet to have “serious weaknesses” in its governance and financial management.
The regulator has now stepped in, saying it does not feel Arklet can meet regulation standards without intervention.
The Reformer understands this is only the fourth time the regulator has taken this step since it was set up in 2011.
A report by the regulator said Arklet had received a number of complaints so an independent review was commissioned, which uncovered a number of issues.
These included weaknesses in relation to the procurement and management of contracts and payment of inappropriate benefits.
Arklet then commissioned a second review which concluded they did not comply with some of the regulatory standards of governance and financial management in relation to these issues.
Other issues included the “persistent failure to comply with important aspects of its constitutional requirements, poor handling of conflicts of interest, and recording and submitting false information”.
Despite steps in October to address the situation, the regulator said: “The work done since then has demonstrated the extent of the failings of Arklet’s management and governance.
“Our judgement is that it will not be possible for Arklet to address the underlying causes of its failures to meet regulatory standards without statutory intervention.”
Christine Macleod, director of regulation at the Scottish Housing Regulator, said: “Our sole objective is to protect the interests of tenants and service users.
“The governance and financial management weaknesses at Arklet pose a serious risk to these interests.
“We’ve taken this decisive action because our judgement is that Arklet is unable to address the underlying causes of its failure to meet regulatory standards without statutory intervention.
“This is the most proportionate way to protect tenants’ interests, the confidence of public and private funders and the good reputation of registered social landlords.”
Catrina Miller, interim director at Arklet, said: “We are committed to working positively with the Scottish Housing Regulator and their appointed manager to make the improvements required.
“We are confident that with the appointees’ assistance we can address these historical issues and once we have worked through our improvement plan we will be in a stronger position in the future”.
Arklet was registered in 1967 as a social landlord. It manages over 300 properties and employs 12 people with an average turnover of £ 2.8 million.
It uncovered payment of inappropriate benefits