Independent inquiry into the collapse of Ujima Housing Association blames bad management
The Housing Corporation (THC) has welcomed the findings of an independent inquiry into the collapse of Ujima Housing Association, which was declared bankrupt in December.
THC chairman Peter Dixon said that it was important for the industry to learn lessons from Ujima’s insolvency outlined in a report published this week.
He said: “This report reinforces the importance of strong governance and effective financial management within housing associations.
“It provides a firm basis for ensuring that the future regulation of the housing association sector is as robust and effective as possible.”
Dixon went on to re-iterate the news from the report which blamed the collapse of Ujima on its own bad management and ineffective board, but said that the company may have been able to avoid insolvency if it had had more time to consult with tenants and stakeholders.
Steven Douglas, chief executive of THC, has put in place a number of changes since Ujima which were endorsed by the report.
He has introduced a new regulation leadership team to oversee all regulatory activity, and has asked for a review of every association owning over 1,000 homes to ensure the THC regulatory strategy remains appropriate and that its risk classification system is correct.
Douglas said: “We are determined to learn the lessons from this independent inquiry, and welcome the Inquiry report’s endorsement of the changes we have made to our systems and processes in the light of our experience handling Ujima.”