The Scottish Housing Regulator also selected seven governing body members to the firm.
The regulator took theaction to safeguard the interests of tenants and service users after an independent investigation identified potential serious misconduct and systemic failures of governance amounting to mismanagement.
The investigation highlighted a number of areas of serious concern including the inappropriate receipt of payments and benefits. It found that Fairfield’s governing body had failed to establish and oversee an effective system of internal control. It found evidence of widespread failures to comply with policies and procedures, Financial Regulations and delegated authorities for spending, poor procurement practices, failure to manage conflicts of interest and to uphold the standards of conduct expected of Registered Social Landlords.
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The statutory manager will be directly accountable to the Regulator. The first priority for the statutory appointees will be to address the serious and urgent risks to the interests of tenants and service users and to tackle the failures in governance and financial management identified in the investigation.
Ian Brennan, Director of Regulation, said: "We have used our statutory powers to protect the interests of tenants and service users and to safeguard the reputation of the sector. In our judgment Fairfield is not complying with the Regulatory Standards of Governance and Financial Management. There are serious and widespread compliance failures across all six Standards."
