MP calls for inquiry into housing co-op

Oct 17 2006 By Neil Elkes, Birmingham Mail

A BIRMINGHAM MP today called for an independent body to investigate allegations of financial mismanagement on a city housing estate.

Hall Green MP Steve McCabe stepped into the row over how the Druid's Heath estate has been run by its own residents in recent years.

The 1,700-home estate was bought back under council control last week following a series of allegations and question marks surrounding the Tenant Management Co-operative.

But Mr McCabe today claimed there are just as many question marks over the council's handling of the affair and said the questionable actions of one council officer involved in the affair had been covered up.

The MP also raised doubts about the freezing of TMC accounts as reported last week, and said that a police investigation was under way over attempts to freeze the account. He said the only way to get to the bottom of the matter was to call in the Audit Commission.

Mr McCabe added: "Cabinet Members and officers of Birmingham City Council have been totally unprofessional regarding this matter.

"There have been secret investigations, unfounded allegations against TMC board members, attempts to smear the TMC's reputation and now covering up the truth about a council officer's own behaviour."

But in a robust defence, Cabinet member for housing Coun John Lines said: "Mr McCabe clearly doesn't know what he is talking about. He should get his facts straight before speaking out like this."

Coun Lines said an inquiry had been carried out by an independent manager from an outside housing association.

Last week the council suspended the TMC over allegations that board members had appointed relatives and friends to highly-paid positions, had failed to collect rent arrears and been responsible for the inappropriate awarding of contracts.

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