The Regulator first used its statutory powers in March 2018 to appoint a manager and four members to Ruchazie’s governing body after it identified widespread governance and financial management weaknesses.

The 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 engagement plan, the Regulator said Ruchazie is implementing its governance improvement plan and has confirmed it will have made the necessary improvements to address its non-compliance with Regulatory Standards by June 2020.

Margaret Sharkey, assistant director of regulation at the Regulator, said: “We will continue to work with Ruchazie as it implements its action plan to improve its governance and financial management so that it can comply with our Regulatory Standards. Ruchazie is making good progress in addressing its weaknesses and the appointments will support Ruchazie as it completes its action plan.”

Statutory appointments will also continue at Fairfield Housing Co-operative.

The Regulator appointed a manager and seven members to the governing body in December 2018 after it identified serious weaknesses in the Co-operative’s governance and financial management and failures to comply with Regulatory Standards.

An independent investigation identified “potential serious misconduct” and “systemic failures of governance amounting to mismanagement”.

In an updated engagement plan, the Regulator said Fairfield has made good progress in addressing the majority of the recommendations from the investigation.