The board manages the estate in Loughborough Junction on behalf of residents and is required to adhere to clear standards of transparency, governance and financial probity.
But a new report being considered by Lambeth’s Corporate Committee next week shows that an audit review of LEMB has identified significant concerns. They include issues with financial management, governance, procurement and value for money. The report also highlights spending on foreign travel and gifts without adequate justification.
The council is working to finalise a review, which under the terms of the management agreement dictated by national TMO legislation, must be agreed with LEMB, or in the absence of agreement go to arbitration, so the contents can be shared transparently with residents.
Serious concerns have also been caused by a letter sent by LEMB to residents which made unsubstantiated allegations regarding safety and threating behaviour, and a decision to move the AGM for the estate online which is not permitted under LEMB’s own rules.
The council has written to residents to set out the true position and has offered LEMB the use of council offices and security for the AGM so that residents are able to have their say.
In response to the concerns raised, the council has referred LEMB to the Financial Conduct Authority (FCA), regarding the potential misappropriation of funds by the LEMB. The FCA is the regulatory body for mutual societies including Tenant Management Organisations such as LEMB.
Lambeth is also lobbying the government to give more powers to local residents and councils to be able to take action when concerns are raised about poorly performing TMOs, given the significant public funds that they control and the hundreds of thousands of residents nationwide whose homes and estates are managed by them.
The council’s actions have been heavily constrained by current TMO legislation, which has meant a ballot by residents earlier this year to not continue with the management by LEMB has not been able to be progressed.
Cllr Danny Adilypour, Deputy Leader of Lambeth Council and Cabinet Member for Housing, Investment and New Homes, said:
“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.”
