Concerns Over Standards 'Incomprehensible' Says NI Housing Executive Board

There's been a fresh development in a continuing controversy about NI Housing Executive (NIHE) contract work.

NIHE ended its £8m contract with Belfast company Red Sky in April and now the NI Housing Minister Nelson McCausland (pictured) has said he has significant concerns about the organisation's process for managing contracts.

As well as starting an investigation into the management of maintenance contracts, he also asked it to reinstate Red Sky until a new system for awarding contracts was introduced. But NIHE said his intervention was "incomprehensible" after an emergency Board meeting on Tuesday morning to discuss the Minister's request to overturn its decision to end its contract with Red Sky.

Yesterday, the Minister said: "Since coming into office I have become increasingly concerned about the processes in place in the Housing Executive to ensure that contracts for maintenance work are properly managed.

"Investigations into two contractors have revealed serious issues and significant failures in the Housing Executive.

"Meanwhile, investigations into activities of Housing Executive staff, which are ongoing, have led to disciplinary action being taken including dismissal, suspension and demotion," he said.

"The public deserve the highest level of service. Clearly the Housing Executive has not delivered this. Initially there will be a full forensic examination into a sample of the current contracts.

"Should it prove necessary, further investigations will be taken forward," the DUP Executive Minister continued.

"I need to know how far these failings go, both within the Housing Executive and amongst appointed contractors.

"I now have significant concerns about the contracts process and I have asked the Housing Executive to suspend any actions to reassign current contracts, provided services to tenants are maintained, until detailed investigations have been carried out in relation to all contracts.

"I am determined that service to tenants will not be affected and work currently underway in tenants' homes will continue."

Red Sky

The latest development comes after the construction and maintenance firm, Red Sky, went into voluntary administration.

NIHE cancelled all maintenance contracts with Red Sky following a top-level inquiry into the contractor's work.

An investigation by the NIHE was said to have found "significant concerns about the company's performance, including overcharging".

The east Belfast-based firm, which specialises in fast response maintenance and repairs had five contracts throughout the city worth an estimated £7m. These will end within the next three months.

In a statement, NIHE said it had "carried out robust investigations before taking the decisions which have led to the current position in relation to the Red Sky Group" when it cancelled all its repair contracts with Red Sky amid allegations of overcharging, which the firm has always denied.

See: Jobs At Risk As Red Sky Dims

(BMcC/GK)