Lambeth (Parliament Politics Magazine) – Lambeth Council outlines actions taken after residents raised major governance, financial and management concerns about the performance of the Loughborough Estate Board.
On behalf of the locals, the board oversees the Loughborough Junction estate and must uphold strict guidelines for financial integrity, governance, and openness.
However, an audit study of LEMB has revealed serious issues, according to a new report that Lambeth’s Corporate Committee will address next week. These include problems with value for money, procurement, governance, and financial management. Spending on gifts and international travel without sufficient rationale is another issue highlighted in the report.
In order for the contents to be shared openly with residents, the council is working to finalize a review that, in accordance with the conditions of the management agreement mandated by national TMO legislation, must be approved with LEMB or, in the absence of agreement, go to arbitration.
The decision to hold the estate’s AGM online, which is against LEMB’s own policies, and a letter that LEMB delivered to residents containing unfounded claims about safety and threatening behavior have also raised serious concerns.
In addition to offering LEMB the use of council offices and security for the AGM so that people can voice their opinions, the council has written to citizens outlining the genuine status.
The council has reported LEMB to the Financial Conduct Authority (FCA) in response to the concerns expressed about possible financial misuse by LEMB. For mutual societies, including Tenant Management Organizations like LEMB, the FCA is the regulatory agency.
Given the substantial public funds under their control and the hundreds of thousands of people across the country whose homes and estates they oversee, Lambeth is also advocating for the government to grant local residents and councils additional authority so they can respond to complaints about underperforming TMOs.
Current TMO legislation has severely limited the council’s ability to act, which has prevented residents from voting earlier this year to end LEMB’s management.
Lambeth Council Deputy Leader and Cabinet Member for Housing, Investment, and New Homes, Cllr Danny Adilypour, stated:
“We are absolutely committed to ensuring that residents’ voices on Loughborough Estate are heard, and that their concerns are adequately addressed.
We are using every avenue we have available to act on this, including referrals to the financial conduct authority, lobbying the government and continuing to engage in legal discussions with the LEMB to ensure they adhere to their management agreement.
Ultimately, councils have limited powers to help residents when difficulties arise with TMOs. This isn’t right and we need urgent reform so that communities are guaranteed good housing management and governance by TMOs, so they can be assured that their rents and service charges are being well spent. We’ll keep supporting the residents on Loughborough Estate until that happens.”
How will the council’s proposed actions change LEMB governance arrangements?
Administering lesser translucency and responsibility through formal inspection reviews and regular reporting, icing LEMB adheres rigorously to its fiscal and governance liabilities. Securing oversight via nonsupervisory bodies like the Financial Conduct Authority( FCA) to probe and act on any fiscal mismanagement or misconduct.
Easing proper resident engagement by averaging on in- person Periodic General Meetings( AGMs) following LEMB’s own governance rules, allowing residents direct input on operation issues. Using legal and arbitration mechanisms under public Tenant Management Organisation( TMO) legislation to resolve controversies and apply operation agreements.
While current legislation limits immediate broad changes, the council’s conduct towards further rigorous monitoring, enforcement, and eventual reform in the governance frame managing Loughborough Estate.
