DISMISSED

1:01pm Friday 8th September 2006

THE chief executive of a housing association operating in Newham has been sacked following an investigation by a Government watchdog.

The Housing Corporation launched an inquiry into the affairs of Arhag housing association over allegations of malpractice involving a £500,000 fraud.

Chief executive Ronnie Moodley MBE and finance manager Richard Odur were suspended following the publication of preliminary findings in January.

The completion of the investigation earlier this month prompted the corporation to announce it will use powers granted under the Housing Act to remove Mr Moodley and Mr Odur permanently from their jobs.

They have since left their posts.

Board members Balrag Purewal and Haroon Jogee would have been removed if they had not already resigned.

The investigation found that the professional dealings of all four men constituted misconduct.

Mr Moodley's bank accounts have been frozen and a criminal investigation has not been ruled out after it was confirmed information has been passed on to police.

Arhag operates in 13 London boroughs and owns 692 homes, including a hostel in Keogh Road, Stratford, and housing throughout Newham for refugees and migrants.

A whistleblower who provided documentary evidence to back up claims of fraud was placed under police protection after receiving a death threat.

An Audit Commission inspection report published in March described Arhag's services as among the worst ever seen.

Its administration of housing allocations was found to be open to abuse and likely to be in breach of regulations.

Tenants' safety was also being put at risk because standards relating to gas servicing and asbestos were not met.

The association spent well below the national average on property maintenance, while charging the second highest rent in London for an association of its size.

Writing for Arhag's last annual report, Mr Moodley said: "The client group we represent is extremely vulnerable.

"We aim to be a role model for the BME (black and minority ethnic) community and grassroots organisations, demonstrating that we can maintain good and accountable governance."

An Arhag spokeswomen said: "We have made significant changes and we are following proper procedures in the way we allocate housing and all board minutes are now signed off individually.

"I am concerned about damage to the association's reputation but a lot of work has been done since the inquiry started and things are being sorted out. Feedback from tenants is positive."

Mr Moodley was awarded an MBE in 2003 for fighting racism.