The Housing Corporation “failed to take decisive action” that could have prevented Ujima from becoming the first housing association to go bust, a report into the affair has found.

The independent review, commission by the corporation, said bad management and an ineffective board were to blame for the collapse of Ujima, which was declared bankrupt in December. It also said the corporation had been “overcautious and should have intervened earlier as a series of signals indicated mounting problems”.

The review panel was chaired by Simon Braid, the head of KPMG’s UK charity practice.