Lambeth Council is preparing to launch a High Court case against Loughborough Estate Management Board (LEMB) over “serious governance, operational and financial concerns”.
LEMB is the tenant management organisation for one of the council’s estates near Brixton, south London. The case is being launched to “compel” LEMB to take immediate action to address the concerns, which include rerunning the continuation ballot, which allows tenants and leaseholders to give their views on the effectiveness of LEMB’s management.
A council report published in November also found “serious audit concerns regarding financial management, governance, procurement and value for money”. It added that LEMB spent money on foreign travel and gifts “without adequate justification”.
Other concerns included hosting an invalid annual general meeting, with attendance below the number of shareholders required under LEMB’s own rules, with no formal resolutions put to shareholders despite being listed on the agenda.
The council wrote to LEMB last month, calling for the manager to take immediate action within 14 days to address the issues. LEMB then requested a 14-day extension to the original 27 March deadline, but this was rejected as it would “cause further unreasonable delay”.
LEMB was given a final extension to 7 April to respond in full. The council said LEMB “failed to provide a full response to the serious failings”, adding it had “no choice but to prepare legal papers for filing in the High Court to ensure compliance”.
A council spokesperson said: “We have been patient and reasonable in seeking a response from LEMB, including granting an extension to the original deadline of 27 March. The matters raised, in many cases, span several months of requests from the council that have simply gone unanswered or have been unsatisfactorily responded to.
“The response received does not provide sufficient assurance that robust measures are in place to address the serious issues identified. As a result, we have taken the decision to apply to the High Court to compel compliance with the management agreement and to protect residents’ ability to have their rightful say on the future management of their estate.”
LEMB has been contacted for comment.
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