The Welsh Government is intervening at a medium sized housing association after it found evidence of “serious failures of governance.”
Hendre requires regulatory intervention because a “significant risk has not been effectively managed”. It has also failed across a number of areas, including “leadership and culture”, “board oversight and control”, “ non-compliance with policy” and “ineffective management and poor professional practice”, the judgement said. Currently the 6,000 home association, which operates in nine council areas across South Wales and is part of the Welsh Housing Partnership joint venture along with three other landlords, has been told to undertake an “independent review of governance and leadership across the organisation”.
It will need to implement any recommendations or actions from the review to a timetable agreed with the regulator. The regulator did not specify what issues it had uncovered at Hendre, but mentioned “concerns” with its compliance with three performance standards, relating to “board and executive management”, “self-evaluation” of compliance and “compliance with regulatory requirements”. Hendre has maintained its “standard” grading for financial viability.
Nigel James, chair of Hafod, said: “The board fully accepts the regulatory judgement and we have entered into a voluntary undertaking with the Welsh Government regulator, which clearly sets out their expectations for improvements and what we will do to address the issues.
“We would like to stress that nothing in the judgement relates to our frontline services. There is no impact on our tenancies or care packages. These are unaffected and our dedicated staff will continue to deliver high quality housing, care and support services.
By Patrick Mooney, editor