The watchdog used its statutory powers to appoint a manager and four members to the Association’s governing body.

These actions follow the outcomes of an independent investigation commissioned by Ruchazie into concerns about the process that led to the departure of its previous senior officer. The investigation identified serious failures to recognise and manage conflicts of interest, and serious weaknesses in the information provided to the governing body.

In an updated regulation report, the Regulator said this demonstrated that the governing body did not understand its role and was not in effective control of decision making within the organisation.

The statutory manager will undertake a strategic options appraisal and a review of Ruchazie’s governance and financial management against the Regulatory Standards. The four appointments will work with the governing body to carry out its role effectively.

Christine Macleod, director of regulation (governance and performance), said: “We have identified a number of serious failures in Ruchazie’s governance and financial management and it is not complying with the Regulatory Standards. Our first priority is to protect the interests of Ruchazie’s tenants. Appointing a manager, and strengthening the governing body, will ensure the Association has the support it needs to address the weaknesses in its governance and financial management.”