By: Michael O’FarrellÂ
Investigations Editor
AN AUDIT of the housing charity sector discovered, in one instance, an organisation without a board – which led to tenants of the association living rent free for 12 years.
The previously unreported audit comes as the Public Accounts Committee chairman Sean Fleming called for the Government’s spending watchdog to investigate financial governance in the social housing sector.
This follows continuing revelations about social housing charities by the Irish Mail on Sunday.
Since 2008 the Department of the Environment has channelled funds in excess of €2.5bn to more than 500 social housing associations responsible for more than 30,000 homes.
These associations – known as Approved Housing Bodies (AHBs) – are now central to the Government’s social housing strategy and are set to receive a massive boost in funding.
However, until now the area has never been formally regulated and a Government promise to have a statutory regulator in place in 2016 looks set to be missed. In January we revealed how Cooperative Housing Ireland – which is responsible for social housing units worth €200m – had forged signatures on cheques for years.
And last week we revealed a series of financial governance concerns at another AHB – the North & East Housing Association – which is responsible for a €20m social housing portfolio.
There are further indications of financial concerns at other AHB’s some of which are detailed in an audit report carried out last year by the Local Government Audit Service The audit found cases of ‘inappropriate governance arrangements,’ including an AHB with no board in place for 12 years whose tenants had not been paying any rent.
The Comptroller & Auditor General, has now commenced a review of ‘systems and procedures adopted by the Department of Environment in relation to Exchequer funding provided to AHBs’.
Following last week’s MOS revelations the C&AG is now considering ‘whether follow up work, with a view to a public report, would be worthwhile.’ PAC chairman Mr Fleming said he was concerned at the revelations given the amount of taxpayer funds being channelled into the sector.
He said he believed a public report was necessary, saying he would urge the C&AG to investigate. ‘At our next meeting I will raise it with the C&AG because housing is a big issue,’ he said.
