In an updated Engagement Plan for Cadder, SHR said it was engaging with Cadder about its “governance and financial management”.

The Regulator added: “In 2019 Cadder identified governance weaknesses following an independent investigation. It developed an improvement plan to address the findings and is working to complete the remaining element of the improvement work, a culture change programme.

“In May 2022, Cadder instructed a further independent investigation following receipt of potentially serious allegations about the association.

“The independent investigation upheld some of the allegations, including that there was failure to operate within respective governance roles, a lack of transparent decision making, weaknesses in procurement and management of conflicts of interest. The report also noted the need for improvement in the strategic management of Cadder’s community centre to achieve its reopening and future viability.

“Cadder’s 2022 Annual Assurance Statement identified areas of non-compliance with Regulatory Standard 6 and confirmed it will develop an action plan to address this.

“Our assessment is that Cadder does not comply with Regulatory Standards 1 and 6 and we have concerns about its compliance with Regulatory Standard 3 in connection with the financial management of the Community Centre. We are engaging with Cadder to seek assurance about its compliance with regulatory requirements, including the Regulatory Standards, and its capacity and capability to deliver the improvements required.”

The Engagement Plan said Cadder had developed some proposals to address the issues, including the recruitment of new members of the management committee through an independently supported recruitment exercise. It added that Cadder has commissioned an independent consultant to assist in the production and delivery of an action plan to address the findings of the independent investigation.

Cadder is also in the process of preparing a Community Centre Business Plan, including an assessment of its viability in the short, medium, and long term.

It concluded: “Cadder is working constructively and openly with us.”

One of the issues raised in the Engagement Plan was the Cadder Community Centre which has been closed since the pandemic. The Association said it is endeavouring to re-open the Centre – which it recognises is highly valued by the community – as soon as possible.

Cadder chief executive Pamela Milne said: “Like every other housing provider we are deeply committed to serving our community through the delivery of high-quality affordable homes, a good repairs service and an unwavering commitment to improving our neighbourhoods.

“We acknowledge the issues raised by the Regulator and are making huge efforts to reach compliance.

“Cadder is grateful to the Scottish Housing Regulator for recognising that we are working constructively and openly with it through our committed Board and hard-working and professional staff.”