The Regulator of Social Housing has made three statutory appointments to the Board of Eldonian Community Based Housing Association following governance issues.

The new appointments are:

• Bronwen Rapley
• Angela Forshaw
• Lesley Thompson

Harold Brown, Senior Assistant Director and head of the regulator’s Investigation and Enforcement team, said: “Following the publication of the regulatory notice on Eldonian in July 2021, we have been working with the provider to ensure it addresses the weaknesses in its governance.

“We have made these three appointments to ensure that the Board has the capacity and capability it needs to resolve the governance failures.”

In its regulatory judgement earlier this year, the RSH said it received a report from the association that showed “the Management Committee did not understand its responsibilities”.

It added that it was “not meeting the regulatory standards, and lacked capacity to address the issues”.

The Regulator also found problems with staffing at a senior level, with the retirement of a CEO and Finance Director, as well as a series of resignations from the Management Committee.

The RSH added: “Through our investigations and information obtained, including our engagement with Eldonian CBHA, we have identified a serious breakdown in the governance, operations and control framework of the provider at the most basic level, which impacts upon the provider’s ability to operate effectively and within vires, potentially putting tenants and social housing at risk.

“Eldonian CBHA subsequently took steps to appoint a number of non-tenant members to the Management Committee, contrary to its constitution.

“As a result of these failures we have concluded that Eldonian CBHA has failed to ensure that its governance arrangements are effective or meet the required outcomes of Governance as set out in the Governance and Financial Viability Standard.

“There are significant weaknesses in the leadership of the organisation both at executive level and within the Management Committee. The executive positions are now being covered by interim officers, and recent attempts to add new independent members to the Management Committee were in breach of the organisation’s rules.

“We therefore lack assurance that Eldonian CBHA is managing its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence, and foresight. We also lack assurance that Eldonian CBHA is adequately managing its financial resources and any potential conflicts of interest.