The finding came as the widow of former chief executive Roger Watson blamed problems at the association for his suicide.
The inquiry, by consultant Sue Marshall, found the association had made extra pension payments to 18 staff who took early retirement over a period of six years, starting before Watson’s time.
The payments were above levels allowed by the Housing Corporation – a breach of its Schedule 1 rules under the 1996 act.
In some cases, Marshall found, the cost to the pension scheme was not known until the next valuation three years later. The payments are recorded in the accounts, however.
Ridgehill is to ask the corporation to allow the arrangements with the former staff retrospectively. It has accepted a dozen recommendations from Marshall to review policies, including the early retirement policy, and to strengthen governance.
The association commissioned the inquiry last December after the corporation placed it under formal supervision (Housing Today, 20 December).
Ridgehill has two corporation statutory appointees on its board and has shortlisted four housing associations to take it over in a group structure (Housing Today, 14 March).
The report’s findings emerged just days after an inquest at Scarborough heard that problems at Ridgehill led Watson to take his own life. When he died on 11 December last year, aged 46, tributes poured in from across the sector.
Watson joined Ridgehill in 1999. His widow, Nicola, told the inquest that her husband knew that there were problems but felt the challenge “was one he was capable of”.
By April last year Watson was having problems. “He was not getting backing from the board, particularly the chairman. The council retained a controlling interest [after the voluntary transfer in 1994] and Roger didn’t feel they fully supported him,” she said.
The inquest heard that Watson had three grievances upheld against chair David Bearfield (pictured). Bearfield denied this, telling Housing Today it was only one.
Hacas Chapman Hendy managing director Julian Ashby, Ridgehill’s acting chief executive, told the inquest that matters came to a head when a union official reported a staff vote of no confidence in Watson and Bearfield. Both announced they would stand down.
Though he was shortlisted for a senior post with Redcar and Cleveland council’s transfer organisation, Mrs Watson said her husband became ill. Despite his achievements at Ridgehill, “Roger felt he had failed and his reputation would be marked”.
On 10 December his two sons found him unconscious in the car with a pipe running from the exhaust. He died later in hospital.
She added: “I can only think he did what he did because of the problems at the housing association.”
Coroner Michael Oakley recorded a verdict that Watson took his own life while the balance of his mind was disturbed.
Source
Housing Today
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