Published Monday, 16 January 2012
The criticisms come in a report published on Monday by the Housing Minister Nelson McCausland.
The report follows the suspension in March 2011 of Helm Housing from the Department's social housing development programme.
Nearly £700,000 is to be taken back from Helm Housing as a result of the inspection process which identified what were described as a 'number of significant and substantial failings' by executives at the organisation.
These include problems surrounding procurement procedures not being followed correctly; breaches of statutory approvals; incorrect use of consultants and incorrect procedures for procurement of land.
Housing Minister Nelson McCausland said his primary concern is the quality of service provided to Helm Housing tenants.
He said: "The report highlights a number of significant failures of control and breaches of compliance across all business areas, indicating significant and substantial failings by the senior management team of the association and a failure of the Board to effect an adequate challenge function to the decision making process within the association.
The Minister said that as a result of the problems at Helm Housing, a series of inspections were carried out at seven other Housing Associations.
Minister McCausland said: "From this work I am content that the significant control issues identified within Helm are limited to that association.
"Moving forward I can assure you that robust governance of the Housing Association movement is something that I and my Department take very seriously and we will not hesitate to take action where it is required," he said.
Alex Maskey MLA, the chairman of the Social Development Committee, expressed serious concerns about the findings of the report.
He said: "This report signals very clearly that any abuse of public funds is not acceptable. We welcome the Minister's statement.
"We are confident that the Department intend to put mechanisms in place to ensure that more regular and improved inspections will mean that there will be greater scrutiny by them.
"We will be rigorous and we will do everything to ensure that all housing associations retain a robust governance structure, where the welfare of housing tenants remains an absolute priority," he said.
Greg Lomax, the interim Chief Executive of Helm Housing, responding to the report, said: "Helm Housing staff have worked closely with DSD officials during their routine inspection. A dedicated review team has been established and is working to resolve the issues identified.
"In addition, Helm is in the process of reviewing its management structures and significant changes to the senior management team have already been made.
"Helm Housing has an obligation to manage and maintain the homes of its tenants and the organisation will continue to fulfil this responsibility," he said.
Cameron Watt of the Northern Ireland Federation of Housing Associations said: "[We] welcome the publication of the DSD report, which concludes the Department's full investigation and review on this important issue.
"Housing associations' top priority is working closely with their customers to ensure high quality services and value for money.
"We are reassured that seven DSD inspections of large housing associations' development programmes triggered by this inquiry have confirmed that they are fit-for-purpose," he said.