Regulator intervenes to address serious weaknesses at Ferguslie Park
The regulator has identified a number of serious weaknesses in Ferguslie Park’s governance and financial management and failures to comply with its Regulatory Standards of Governance and Financial Management.
Ferguslie Park recently commissioned an independent investigation which highlighted a number of serious concerns including inappropriate payments being made without the proper delegated authority. A Section 72 notice was also sent to the regulator from external auditors notifying it of inappropriate payments.
A regulation plan published by the Scottish Housing Regulator stated: “We consider these areas of concern pose significant risks to the interests of tenants, to public and private funders’ confidence and to the reputation of registered social landlords. We have decided to use our statutory powers to appoint a manager to Ferguslie Park under section 58 of the Housing (Scotland) Act 2010. We have also decided to use our statutory powers under section 65 of the Housing (Scotland) Act 2010 to appoint three additional members to Ferguslie Park’s governing body.”
Christine Macleod, director of regulation (governance and performance), said: “Our priority is to protect the interests of tenants, the confidence of public and private funders and the good reputation of registered social landlords. The issues at Ferguslie Park are serious. Appointing a manager and strengthening the governing body are proportionate and effective actions to ensure the Association addresses the weaknesses in its governance and financial management.”
The regulator said that Ferguslie Park has recognised the serious nature of the issues and the risk it presents to tenants’ interests. It has responded positively and is working openly with the regulator to address the weaknesses.