The Scottish Housing Regulator has used its statutory powers to appoint a manager to Ruchazie Housing Association and to make four statutory appointments to the Association’s governing body.
These actions follow the outcomes of an independent investigation commissioned by Ruchazie into concerns about the process that led to the departure of its previous senior officer. The investigation identified serious failures to recognise and manage conflicts of interest, and serious weaknesses in the information provided to the governing body. This demonstrated that the governing body did not understand its role and was not in effective control of decision making within the organisation.
The statutory manager will undertake a strategic options appraisal and a review of Ruchazie’s governance and financial management against the Regulatory Standards. The four appointments will work with the governing body to carry out its role effectively.
Christine Macleod, Director of Regulation (Governance and Performance), said: “We have identified a number of serious failures in Ruchazie’s governance and financial management and it is not complying with the Regulatory Standards. Our first priority is to protect the interests of Ruchazie’s tenants. Appointing a manager, and strengthening the governing body, will ensure the Association has the support it needs to address the weaknesses in its governance and financial management.”
1. The Scottish Housing Regulator was established on 1 April 2011 under the Housing (Scotland) Act 2010. Its objective is to safeguard and promote the interests of tenants and others who use local authority and RSL housing services. The Regulator operates independently of Scottish Ministers and is accountable directly to the Scottish Parliament. It assumed its full regulatory responsibilities on 1 April 2012. The Regulator consists of the Chair and seven Board members. More information about the Regulator can be found on its website at www.scottishhousingregulator.gov.uk
2. SHR regulates around 160 registered social landlords and the housing activities of 32 local authorities. This analysis covers the finances of registered social landlords.
3. SHR sets out how it regulates social landlords in its published framework – Regulation of Social Housing in Scotland.
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