The National Audit Office has begun investigating some of the events which led to the Housing Corporation placing Medina housing group under supervision earlier this year.
The move is in response to a complaint by former Medina chairman Robert Jones who raised concerns about the period before the corporation's move last February.

"We have received a complaint about this housing association and we are making enquiries," the NAO confirmed.

The corporation said it moved in in February primarily because of doubts about Isle of Wight based Medina's ability to produce a viable business plan and secure refinancing (Housing Today, 24 February).

But Jones has sent the NAO leaked Medina Housing and Care Group documents - seen by Housing Today - which include an invitation to compete for architectural services for a new nursing home. A member of the board of the group subsidiary, Medina housing association, was a partner in one of the three practices invited.

The competition was for the design of a nursing home on the Hosiden Besson site in Binstead. An architects' selection panel held on 16 November 1999 saw presentations from three firms, including Southampton-based Pope Priestley Associates in which Medina housing association board member Frank Pope was a partner.

Medina said this week no appointment was made and the site was later sold to raise funds.

The corporation said this week it could comment on these matters at the present time.

Last week Medina's accounts revealed a £213,000 pay-off to former chief executive Terry Hutchins at the beginning of this year. Last week's AGM defeated a motion from Jones to reject its accounts and hold an inquiry by nine votes to five.

Jones said this week it was astonishing that the corporation had not held an inquiry into Medina.

Medina acting chief executive Joanna Bound said this week she had reviewed the files and was satisfied no appointment had been made which would have breached Schedule 1 of the 1996 Housing Act.

Medina has now selected Bromley-based Broomleigh Housing association and Christchurch-based Western Challenge as possible partners. It will select a preferred partner next month.

"We are emerging from a difficult period and trying to move forward towards a long-term strategy," said Bound.

Source

Housing Today