Responding to the report of the independent Inquiry into the circumstances surrounding the collapse of Ujima Housing Association, Peter Dixon, Chairman of the Housing Corporation said:
"The Housing Corporation Board is determined that we should properly understand the circumstances surrounding Ujima's insolvency. We - and the sector more widely - should learn lessons from what occurred. This report reinforces the importance of strong governance and effective financial management within housing associations. And it provides a firm basis for ensuring that the future regulation of the housing association sector is as robust and effective as possible.
"We note from the conclusion of the report that the primary responsibility for Ujima's collapse was its own bad management and ineffective Board, but that 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, had the Corporation intervened at an earlier stage.
"We welcome the report's recognition of the Corporation's success in acting swiftly to ensure that - when Ujima went into insolvency - no tenants lost their homes, no tax payers' money was lost and lenders were successfully protected."
The report highlights areas where the Housing Corporation could have acted differently in the way it dealt with Ujima, in particular in relation to the speed with which it took regulatory action in late 2006 and early 2007, and - more generally - in relation to the handling of allegations and the Corporation's approach to dealing with an unco-operative RSL.
It also highlights the new, more graduated, regulatory powers that will be exercised by the Tenant Services Authority, which might have provided a wider range of possible interventions, had they been available to the Housing Corporation at the time.
Steven Douglas, Chief Executive of the Housing Corporation, who ordered the review, has already put in place a number of changes since Ujima to address these issues, which have been endorsed by the report.
The fundamental changes to the way the Housing Corporation will regulate going forward fall into five main areas:
In addition, since the report was commissioned, the Housing Corporation has instituted regular monitoring of the impact of the current credit crunch on associations businesses, the results of which it is publishing regularly.
The Housing Corporation announced that three statutory appointments have been made to the Board of Presentation Housing Association.
Presentation Housing Association, which manages around 6,000 homes across London and the south east of England, has been placed under supervision by the Corporation because of concerns about its governance.
The appointees are:
The Corporation removed Presentation's Investment Partner status in April 2008. While it remains in supervision, the Corporation will not approve any new public funding for Presentation.
Moat announced that Brian Johnson will be joining the organisation in late September as its new Chief Executive. He will be taking the reins from John Barker, who announced his retirement from Moat earlier this year.
Brian Johnson is currently chief executive of CityWest Homes, which manages 22,000 homes owned by Westminster City Council. During his four years as Chief Executive of CityWest, he has led the organisation to achieve recognition by the Audit Commission as an exemplar in the sector with a rating of 'three stars' with excellent prospects. He also established a new home building programme - a 'first' for an arms length management organisation.
Before he joined CityWest, Brian Johnson was Executive Director of Operations for Remploy, which employs 6,000 people with disabilities. Prior to that he was Business Engineering Manager at Tate & Lyle.
The Riverside Group officially celebrated the completion of the Litherland Beatles mural, painted by artists from each side of Northern Irelands political divide on the worlds first Beatles day last week.
Belfast artists Mark Ervine, Danny Devenny and Mickey Doherty returned to Liverpool to answer questions from supporters of The Liverpool Mural Project from the worlds of business, culture, education and media, at an event for guests at the Lathom club in Litherland.
The artists completed the mural - depicting a 14ft image of John Lennon, the Beatles, Pete Best and Stuart Sutcliffe - last month to celebrate The Riverside Groups 80th anniversary, which coincides with Liverpools Capital of Culture year. Located on the gable end of a Riverside Group property in Croxteth Avenue, the mural faces one of Merseysides busiest traffic islands.
Hugh Owen, director of policy and communications at The Riverside Group said:
"We had to overcome a few hurdles in planning Merseysides first mural of its kind. The dogged determination and enthusiasm of the Liverpool Mural Project and the artists has paid off. The finished result is a cultural icon for peace for everyone to enjoy."
