Westminster council has taken over the running of Pimlico Village Housing Co-operative, following serious concerns over its financial management.
One member of staff from the co-op has been suspended over the incident and auditors are investigating the company's finances.

The running of the Lillington and Longmore Gardens estates in Victoria will now be done through Westminster's arm's-length management organisation, CityWest Homes.

Michael Brahams, the council's cabinet member for social and community services, said: "Westminster decided to act after it was advised to safeguard the interests of tenants and lessees. Over the past few months, the council has grown increasingly concerned with the financial and operation management of PVHC. The co-operative was spending over its budget, creating a deficit that would lead to problems for the whole estate."

A council source said the co-op had been receiving about £1m a year from the local authority since it was set up in 1997, yet much of the money was unaccounted for.

He said: "The money given to them has been difficult to track and spending has gone over what was budgeted. The auditors are going through the books and then we will decide on what we do."

Before being taken over, PVHC had reportedly asked the council for a further £100,000 to "tide them over", but the council refused.

The council defended its decision not to investigate the co-op sooner, arguing that it had wanted to make PVHC face its responsibilities. Westminster had offered to set up a rescue plan last July, following concerns over its management, but the co-op refused. The final straw was said to have been the number of complaints from local residents about services and delays to repairs.

Source

Housing Today