Ujima inquiry terms of reference announced

Housing Corporation News Release

Ujima inquiry terms of reference announced

5 February 2008 ref 09/08

The terms of reference for the independent led inquiry into the circumstances surrounding the difficulties and ultimately transfer of engagements of Ujima Housing Association have been announced today (Tuesday 5 February 2008) by the Housing Corporation.

The review will:

assess the extent to which Ujima's board and senior management had access to accurate and timely information on its performance and whether that information was shared with its auditors, lenders and the Housing Corporation in an open and accountable manner;
assess the application of the Corporation's risk based approach to regulation, including its investment decisions, and to determine whether there were any deficiencies in the approach and/or its application;
assess the effectiveness of the Corporation's insolvency powers, and how they were employed in ensuring:

(a) the protection of Ujima tenants' interests;
(b) the protection of the public purse and publicly funded assets;
(c) the safeguarding of lenders' interests;
(d) consideration of other Corporation objectives, e.g. sustaining a vibrant independent BME sector;
make recommendations as to whether, and if so how, regulation policy and/or operational systems may be improved in preparation for the establishment of the new social housing regulator;
recommend any amendments to the Housing and Regeneration Bill that would improve the new regulator's ability to identify and respond to the potential failures of a registered provider to meet regulatory requirements; and
review the adequacy of other legislation (such as that governing industrial and provident societies and the role and responsibilities of shareholders)that impacted on the operation of Ujima over this period.

The review which will look at events from April 2005 onwards, will draw on all relevant documentation within the Housing Corporation, and interviews with Corporation staff. It will assess the management and governance of Ujima to understand the interrelation between Ujima's actions and the Corporation's regulatory role. The review will also draw on information provided to Ujima's lenders by the association. The review team will consider further contact with Lenders, other RSLs and Ujima's financial advisors and auditors as appropriate.

The Inquiry team will be chaired by Simon Braid, Head of KPMG's UK Charity practice, who will be supported by Jas Bains, Chief Executive of Ashram Housing Association and Donald Hoodless, Housing Corporation Board Member and Chair of its Audit and Risk Committee.

Housing Corporation Chief Executive, Steve Douglas said, "This independent led inquiry will provide us with valuable information on the events leading up to and surrounding the collapse of Ujima.

"It is vital that we learn from any the lessons that the inquiry highlights as we prepare for the establishment of OFTENANT."

The initial report of the Inquiry, which will focus on items five and six above will be delivered by 31 March 2008. The full report will be delivered in Summer 2008.

Ends.

For more press information please contact Sandra White on 020 7393 2094

Notes to editors:

1) Background

The Housing Corporation is responsible for regulating housing associations, which provide some two million homes across England.

Ujima Housing Association, a BME led RSL which owns and manages around 4,600 homes, mainly in London was placed under Housing Corporation regulatory supervision in October 2007 because of concerns about its governance. It became clear in November 2007 that Ujima were in very severe financial difficulties and in December 2007 the association petitioned to Court to wind up on the basis that it could not meet it debts as they fell due, and their secured creditors appointed receivers to enforce their security. This triggered a statutory moratorium under the Housing Act 1996, during which time the Housing Corporation put proposals to lenders to safeguard the interests of tenants, the taxpayer and lenders. Following the acceptance of the Housing Corporation's proposals by creditors, on 16 January, Ujima's assets and liabilities were transferred to another housing association, London and Quadrant Housing Group.

The Housing Corporation announced on 23 January that it would be holding an independent inquiry into the circumstances surrounding the collapse of Ujima.

The full terms and reference for the inquiry are available from the 'See also' box at the top of this page.

2) Inquiry team biographies

Simon Braid MA FCA - KMPG's UK Head of Charity Practice

Simon Braid is KPMG's UK head of Charity Practice. He has extensive experience of working with charities of all sizes including Action Aid, Barnardo's, NCH, The Children's Society, Scope and International Planned Parenthood Federation. He has particular experience of working with overseas charities including the International Committee of the Red Cross and Action Aid.

Simon was an audit partner from 1988 to 2006. He chaired the APB's Social Housing group and the ICAEW's Housing Association sub committee and was a member of the Social Housing SORP working party. Simon has extensive experience in working on overseas due diligence assistance including Anglo French joint ventures in the defence industry and has led teams carrying out the validation of Business plans developed in connection with local authority housing transfers,

Simon led KPMG's Housing Association practice from 1995 to 2006 and chaired the ICAEW's Social Housing sub-committee and was a member of the Social Housing SORP working party. His clients vary from major social housing groups such as Glasgow Housing Association, Anchor, Shaftesbury and Moat, LVSTs and smaller charitable associations.

Jas Bains CEO Ashram HA

Jas Bains has worked in the housing and regeneration field for 20 years gaining wide ranging experience with housing associations and local authorities. In 2003 he was appointed chief executive of Ashram Housing Association and led the organisation out of supervision. At the 2007 UK Housing Awards Ashram won the Outstanding Achievement for Housing in England for the delivery of innovative services to vulnerable people. His experience of governance includes being formerly a board member of Tuntum Housing Association during supervision, St Basils and currently Wolverhampton Homes ALMO. He was also recently appointed to the board of the Regional Development Agency – Advantage West Midlands.

For a number of years Jas has been widely seen as a champion and advocate of BME issues in the West Midlands. As the former chair of the West Midlands BME Housing Network he was successful in arguing for representation on the Regional Housing Board and for increased investment for BME communities. He has served as an independent member of the Housing Corporation’s National BME Advisory Group and the Federation of Black Housing Organisations Committee.

Donald Hoodless, Housing Corporation Board Member and Chair of its Audit and Risk Committee

Donald Hoodless was Chief Executive of Circle 33 Housing Trust until June 2005. He also Chaired G15 - an informal group of the 15 largest housing associations in London. He is currently Chair of the Royal National Orthopaedic Hospital Trust and Chair of Skills for Care (part of the Sector Skills Council for Care and Development).

Donald was formerly Chief Executive of Notting Hill Housing Trust, and before that worked at the Post Office and the Greater London Council as an economist. He is also a former Leader of Islington Council. He has held non-executive roles in the area of Health at Camden and Islington Mental Health NHS Trust and West Middlesex University Hospital Trust.

3)The Housing Corporation - further background

In addition to its regulatory role, the Housing Corporation is the Government's national affordable homes agency, responsible for investing in new affordable homes and regulating nearly 2,000 housing associations across England. The Corporation's £8 billion investment programme for 2008-11 is its biggest ever. Its previous investment programme of £3.9 billion for 2006-08 is funding 84,000 homes; 49,000 of these are for affordable rent, and 35,000 are for affordable sale through the Government's HomeBuy initiatives, helping people to get a foot on the property ladder.

The Housing Corporation is working with English Partnerships and Communities and Local Government to establish the proposed Homes and Communities Agency and Office for Tenants and Social Landlords (OFTENANT)

4) A copy of the terms of reference is available from the 'See also' box at the top right of this page.