A HOUSING watchdog has exposed serious financial and management failures at an under-fire housing association behind the botched £8.5million refurbishment of hundreds of South Side homes.

The refurbishment scheme of 608 properties that should have taken 12 weeks – but is still ongoing 31 months later.

The Scottish Housing Regulator has now parachuted in a new manager and four other senior managers to rescue failing Thistle Housing Association.

READ MORE: Toryglen residents' fury over botched home repairs

For the past two years, the Evening Times has reported residents’ serious concerns with the Toryglen organisation after a catalogue of failures. 

Thistle bosses even called the police to report residents who complained about mismanagement of the project and their funds.

But now their concerns have been found to be justified as the regulator moved to safeguard the interests of tenants.

An independent review identified failures to meet regulatory standards of governance and financial management. 

Ian Paterson was one of a group who lobbied First Minister Nicola Sturgeon and council leader Susan Aitken for support.

He said: “Two years ago residents smelt a rat in Thistle. We asked questions and, in turn, we were constantly lied to. 

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“It was all too obvious that they couldn’t manage their Major Works Programme, which has yet to complete after 31 months. 

“The current situation regarding the Regulator moving into Thistle only emphasises our fears and vindicates the actions of Toryglen residents.

“It is, it has to be said, also rather sad as the Association belongs to Toryglen residents and not to Thistle’s senior management.”

The Evening Times has spoken to countless residents and contractors affected by the programme of works.

Serious concerns were repeatedly raised about the mismanaged scheme.
Thistle, which employs 22 people, owns and manages 947 homes on the South Side and factors a further 786 for owners.

The regulator’s report reads: “During 2017/18, we engaged with Thistle around serious delays and difficulties in managing a substantial contract, its governance capacity, risk management and its communications with service users and stakeholders. 

“We also engaged around weaknesses in Thistle’s approach to complaints handling.”

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The project, paid for by Glasgow City Council and Scottish Government funds to the tune of £4.25 m each and carried out in partnership with energy giant E-on, was hit with delay after delay.  

Some residents had as many as 13 completion dates for their homes and, even when work was signed off by Thistle, it was rejected as shoddy by householders.

An independent report said Thistle had “widespread compliance failures”.
The housing regulator reports adds there were “serious weaknesses in Thistle’s openness and communications with its its tenants and service users”.

It reads: “The governing body has accepted the findings from the review and has agreed an extensive and ambitious Governance Improvement Programme to address the review recommendations and to bring about transformational change in the organisation. 

“It has commissioned independent consultants to support it to deliver aspects of the programme over the next 12 months.”

But watchdogs said the association had previously been slow to respond so they decided to appoint their own five-strong team of managers.

Resident David Crockwell, who works in the building trade, said he was unsurprised at the move and said action should have been taken sooner.

He said: “I’ve been saying for the past two years that Thistle is not managing its finances correctly and was unable to. 

“I had taken my concerns to Nicola Sturgeon and to Susan Aitken and we have been waiting a long time for action.”

Susan Aitken described the situation as “months of turmoil”. 

She said: “Along with several Toryglen residents, I had asked the Housing Regulator to urgently investigate whether Thistle Housing Association’s governance was fit for purpose, following the months of turmoil local people have suffered due to the badly mismanaged E-on contract and works programme. 

“I am very pleased the Regulator has responded so robustly to those concerns. 

“I would urge Thistle to accept this intervention and drastically improve their procedures and practices. 

“While I am in no doubt the bulk of the blame for this debacle lies with E-On, Thistle must accept their share of responsibility. 

“They have badly let down people in Toryglen and they must work to rebuild trust.”

Residents appealed to Nicola Sturgeon, who came out and toured the community.

When the Evening Times first reported on the problems, they included:

  • Gardens being badly churned up and grass not replaced.
  • Patio stones being damaged and not replaced
  • New roughcast being bald.
  • Claims of raw sewage coming in to residents’ flats.
  • A gas contractor was removed from the site when safety issues were raised

As a result of the gas safety issues five separate RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013) notifications were raised.

As well as the physical problems with their homes, relations between householders and Thistle severely broke down.

And there were concerns about contracts with several residents, including one, David Crockwell, noticed staff member Linda Quinn signed their Minute of Agreement prior to the works starting as a witness but residents said Ms Quinn was not present when the documents were signed.

Ian Brennan, Director of Regulation at the Scottish Housing Regulator, said: “Thistle has recognised the need to change in order to comply with regulatory standards. 

“Our intervention will support that change so that tenants and service users have the benefit of a fully compliant Registered Social Landlord.”

A spokeswoman for Thistle Housing Association said: “The association is reviewing the findings and recommendations highlighted in today’s regulation plan. The association will continue to work in full co-operation with the Regulator as we move forward.”