Astonbrook Housing Association

THREATENED WORKERS AMBUSH THE GREAT AND GOOD

20-05-2008

Workers from Birmingham’s threatened Astonbrook Housing Association “ambushed” the great and the good attending St Philips Cathedral for Sir Richard Knowles’ memorial service yesterday. More than 100 campaigners also turned out for a public meeting last night to protect the jobs of staff working with asylum seekers.

As we revealed yesterday, Astonbrook – whose clients are mainly from the Somalian community – has been managed since July by accountants Baker Tilley, following allegations of a multi million pound fraud. (see link here)

Police investigations are continuing, but no one has been charged in connection with the claims.

It’s alleged that since Baker Tilley became interim managers, Astonbrook has started losing money, having previously generated a surplus in excess of £1million a year.

There are also suggestions that a Home Office contract which the business needs to survive has been surrendered, putting 135 jobs at risk.

Baker Tilley deny both these suggestions, and the future of Astonbrook should become clearer today, when they finally get around to letting staff know what’s going on.

Employees claim they’ve been kept in the dark, and have held a series of protests, including one yesterday outside the Government Office West Midlands near the Cathedral.

That coincided with Dick Knowles’ memorial service, giving workers the chance to argue their case with leading politicians, including MP’s Lynne Jones, Richard Burden and Khalid Mahmood.

Another gathering last night at the Regents Park Banqueting Suite in Small Heath – at the heart of “Little Somalia” - drew more than 100 people, underlining the strength of feeling about the issue.

The Police and the Charity Commission are, of course, duty bound to investigate allegations of financial mismanagement, and we make no comment about their activities.

Nevertheless, the role of Baker Tilley is open to question. They have told staff – and us - that news of the cancellation of a Home Office contract was a “misunderstanding”.

Yet we’ve seen a letter sent on May 13 to “stakeholders” from Gail Adams, Midlands and East director of the UK Border Agency, that suggests otherwise.

She says: I am writing to inform you that the charity Astonbrook Housing Association are handing back their accommodation contract to the Home Office because the charity have confirmed that they cannot provide the service required under the contract.

"The Home Office is working with the charity and other providers to safely and securely transfer the services provided under the contract to existing target contract accommodation provider/s in West Midlands."

This would almost certainly mean that all of Astonbrook’s workers would lose their jobs.

Despite this, Alan Caperon, a director of Baker Tilley then wrote to the workers saying, “I can assure you that the Interim Managers have not handed back the…contracts.”

When we contacted the Home Office, they appeared to back up Gail Adams original email, saying:  "The UK Border Agency (UKBA) let three contracts to Astonbrook Housing Association to accommodate individuals seeking asylum.

"Despite concerns about the management of the organisation the UKBA has continued to work with Astonbrook to try and improve the service they have been providing.

"No other accommodation provider has been given the level of intensive support they have received, but despite this, the level of service has continued to fall.

"The Charities Commission was so concerned about the management of Astonbrook that they engaged interim managers who have subsequently been unable to correct the contractual failings."

In other words, the service hasn’t improved, and so the company is in breach of contract - again, bad news for staff.

Baker Tilley meanwhile are sticking to their guns. They are refusing to admit to the loss of the contract and deny that they have contributed to Astonbrook’s problems.

In a statement issued last night they said:  "We categorically reject any suggestion undermining our undertaking as interim managers of Astonbrook which has been a challenging and complex project involving an ongoing fraud investigation which remains current.

"The fees and costs involved, which have been approved by our appointers the Charity Commission, have not in any way impacted upon services to the beneficiaries of the charity who remain our priority.

"We are meeting staff tomorrow - today's original meeting having been postponed due to the strike - at which ongoing service provision will be discussed.

"With regard to the suggestion that the association was in surplus last year, we have serious doubts about the figures produced prior to our appointment."

Know more about Astonbrook Housing Association? Contact editor@thestirrer.com

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