Statutory appointments to continue at Arklet Housing Association
The statutory appointment of a manager and governing body members at Arklet Housing Association is to continue until the end of December 2018, the Scottish Housing Regulator has announced.
Intervention at the Association began in February 2017 when the Regulator used its statutory powers to “address serious weaknesses” in Arklet’s governance and financial management and that of its advice and support subsidiary Kol-Care. A manager and three governing body members were appointed at the Association.
An initial independent investigation had identified a number of weaknesses in relation to procurement, contract management and the payment of inappropriate benefits. A further comprehensive and independent review of Arklet’s governance and financial management systems identified additional serious weaknesses including a persistent failure to comply with its constitution, poor handling of conflicts of interest and recording and submitting false information.
In updated regulation plan published last month, the Regulator stated that Arklet has now developed a Governance Improvement Plan to address the weaknesses in its governance and financial management and is making progress implementing the necessary changes.
After reviewing the progress that Arklet was making in August 2017, the Regulator noted that it had taken action to ensure that the governing body was properly constituted and it had reviewed its relationship with Kol-Care which is now in the process of being wound up.
Arklet also considered its strategic options and decided to pursue a partnership with another Registered Social Landlord. It is now considering prospective partners and will develop a business case for the partnership proposals and engage with the Regulator and its stakeholders, including its tenants, as it takes this forward.
Arklet also has a substantial programme of work to complete to demonstrate that it is able to comply with Regulatory Standards of Governance and Financial Management. It will consider the scope and timing of this work in light of its partnership proposals.
In light of these developments, and with one of the appointees having to stand down, the Regulator has decided to continue the appointment of the manager and two governing body members until the end of December 2018.
It said: “Arklet still requires the expert support of the statutory manager and the appointees to help it to develop the business case for the partnership, implement the partnership proposals and deliver the necessary improvements.”