星空传媒

A former chief officer of Britain鈥檚 largest and most troubled housing cooperative has called on the parliamentary ombudsman to investigate the Housing Corporation鈥檚 handling of its bitter disputes.

Both sides at Clays Lane Housing Co-operative accuse the regulator of failing to prevent problems getting out of hand.

The disputes include a libel case brought against former chief officer Sue Berry by John Lynn, who is now the co-op鈥檚 chair.

Berry claims she has written to the corporation 11 times since October over alleged serious failings at the co-op. But it did not respond properly and ignored many letters, she says.

The corporation last week ordered the Newham-based co-op to transfer its assets to Peabody Trust, subject to consultation.

Clays Lane has been under corporation supervision for 15 years and was subject to a highly critical unpublished statutory inquiry report (Housing Today, 10 May).

The dispute stems from events two years ago, when Lynn, then an ordinary co-op member, issued writs for libel against Berry and members of the management committee.

The co-op agreed to indemnify Berry as an employee, she says. But then last December Lynn became chair, and Berry says all legal papers are going to the co-op.

The management committee decided the issue should go to arbitration. Committee minutes in December record 鈥渃hair to action鈥�. Lynn was present but did not vote.

He told Housing Today: 鈥淪ue Berry was notified that the committee did not recognise her right to be funded, and her solicitors were notified that the co-operative would not fund her defence. Therefore it is not the case that the person who brought the case is taking forward the defendant鈥檚 case.鈥�

It is believed Berry still wants the case to go to court, not arbitration, and maintains the co-op should fund her defence.

The statutory inquiry report had commented: 鈥淚f the disputes cannot be resolved without resort to libel proceedings, there must be little hope that Clays Lane can operate in accordance with the principles of cooperation on which it is supposed to be founded.鈥�

Berry filed a county court claim last November against the co-op alleging it had failed to protect her from harassment, and breach of contract. She was subsequently sacked.

The corporation said it has not been notified of Berry鈥檚 ombudsman complaint.

Clays Lane has also come under heavy fire from Newham council. Housing director Chris Wood said the co-op had made 鈥渓ittle, if any, contribution to housing resources in Newham鈥� and was an 鈥渁dministrative disaster鈥�.

Wood added: 鈥淭he corporation has taken a long time; this takeover could have happened earlier in the process.鈥�

Lynn is seeking an urgent meeting with the corporation. 鈥淭he difficulties currently being experienced by CLHC are the culmination of a lack of urgency on the part of the regulator in dealing with complaints of mismanagement,鈥� he said.