Serious mismanagement in governance and financial affairs was found by an inquiry last year, and exclusively revealed by this magazine (Housing Today, 10 May).
The quango served orders on four unnamed banks last week, directing them not to part with money or securities without its permission. It also served an order on the co-op restricting the transactions it can enter into without corporation approval.
The measures are expected to be short term, until a plan to transfer the co-op’s assets to Peabody Trust is finalised.
The corporation said: “This move follows an extended period when the corporation asked Clays Lane Housing Co-operative to demonstrate that it could manage its affairs effectively, but [we have] concluded that the progress made fell short of our expectations.”
Clays Lane reacted angrily, saying it believes the corporation has no power to take the action against its new management committee and should instead have acted against last year’s committee, which included corporation appointees.
Chair John Lynn said: “There was a lack of propriety in previous committees and the corporation established that in its statutory inquiry. We are concerned that that power was not used at that time.”
He said that Clays Lane would cooperate with the latest order. But at the same time it is taking legal advice on a possible judicial review of the corporation’s actions. The co-op is calling for a formal inquiry into the corporation’s alleged failure to step in earlier.
“We have requested our MP to pursue whether the corporation is a body that should be permitted such powers when it patently seems unable to use them responsibly,” Lynn added.
Clays Lane is already embroiled in a series of legal actions involving members, its committee and former chief officer Sue Berry (Housing Today, 21 February). She has now lodged an unfair dismissal claim against the co-op with Stratford Employment Tribunal.
Source
Housing Today
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