Authority says Loughborough Estate Management Board has not adequately responded to governance concerns
Lambeth Council has announced it is preparing to take legal action against a tenant management organisation which manages one of its estates near Brixton, south London.
The local authority is seeking to get the High Court to compel Loughborough Estate Management Board (LEMB), which manages 1,214 homes, to take immediate steps to address governance and financial concerns.
These include re-running a continuation ballot, in which tenants and leaseholders give their views on their management board’s performance.
On 13 March, the council wrote to LEMB with a final warning, insisting immediate action be taken within 14 days to address its concerns.
The board’s legal representative requested a 14-day extension on the deadline but this was rejected. A final seven-day extension was given, according to Lambeth Council, but it said that LEMB failed to provide a full response by the end of this.
The council said it was faced with “no choice” but to prepare legal papers.
“We have been patient and reasonable in seeking a response from LEMB, including granting an extension to the original deadline of 27 March,” said a council spokesperson.
“The matters raised, in many cases, span several months of requests from the council that have simply gone unanswered or have been unsatisfactorily responded to.
“The response received does not provide sufficient assurance that robust measures are in place to address the serious issues identified.
“As a result, we have taken the decision to apply to the High Court to compel compliance with the management agreement and to protect residents’ ability to have their rightful say on the future management of their estate.”
Last November, Lambeth published a report which highlighted audit concerns regarding financial management and governance at LEMB, including spending on foreign travel and gifts without justification.
According to the council, an annual general meeting held by the board in February had an attendance below that required by its own rules and was therefore not valid.
LEMB on its website said 92.4% of residents voted for the board to continue the management of the organisation back in February 2015.
LEMB has yet to respond to a request for comment.
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