Further investigation required into DGHP’s internal control system, says Regulator

Dumfries & Galloway Housing Partnership (DGHP) has been requested to complete an independent investigation into the effectiveness of its internal controls and management systems following the conduct of a former employee.

The Scottish Housing Regulator regards DGHP to be among a number of “systemically important” RSLs given the combination of its size, turnover, level of debt and geographic importance.

In May 2017, DGHP made the Regulator aware of a potential conflict of interest and breach of the code of conduct by one of its (now former) senior members of staff and an independent investigation into these events was commissioned by the RSL.

In a regulation plan published last week the Regulator said that the initial findings of this investigation “raised a number of questions about the manner in which DGHP’s internal control system had operated in relation to this matter”.

It has now requested that DGHP completes the initial independent investigation to confirm the effectiveness of its internal controls and management systems and commissions a further independent and more wide-ranging review of its governance against the Regulatory Standards of Governance and Financial Management.

Dumfries & Galloway Housing Partnership told Scottish Housing News it is working co-operatively with the Regulator.

A DGHP spokesman said: “We are working co-operatively with the Scottish Housing Regulator to investigate specific matters drawn to our attention regarding the conduct of a former employee. Our initial investigation has been concluded, and this is now being followed up with some additional work which will serve to provide both DGHP and the Scottish Housing Regulator with further assurance. We continue to have a medium level of engagement with the Scottish Housing Regulator.”

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