Ujima Housing Association inquiry terms of reference announced » Housing » 24dash.com

The terms of reference for the independent inquiry into the circumstances surrounding the difficulties and ultimately transfer of engagements of Ujima Housing Association have been announced by the Housing Corporation.

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 March 31.  The full report will be delivered in Summer 2008.

According to 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.
• 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.