North West council sacks entire board of ALMO

A local authority in the North-West of England has sacked the entire board of its arm’s length management organisation, which oversees the running of 8,000 council homes.

Bury Council said concerns over governance at Six Town Housing were behind its decision to appoint an interim board, which it was allowed to do under the company’s articles of association.

The original board had suspended the ALMO’s chief executive, Sharon McCambridge, a move that Bury did not consider justified.

Mike Kelly, deputy chief executive of Bury Council, has been appointed chair of the interim board. Jayne Hammond, director of legal and democratic services, becomes a board member.

In a statement, Kelly said: “The interim board will operate in the best interests of Six Town Housing, its tenants and staff, and it is envisaged that the interim board will be in place only until November 2010 at which time a new board will be appointed at the annual general meeting.

“The interim board will work with staff at Six Town Housing to ensure that operational activities continue uninterrupted and in line with key priorities for Six Town Housing, while addressing some of the governance issues which have come to light.

Mark Sanders, Bury’s chief executive, told The Bury Times that the existing board was not holding the ALMO to account and protecting the council’s interests “as well as they ought to have been doing”.

However, former board chairman John Smith said he was disappointed with how it had been handled. He added: “Six Town Housing was a failing organisation and we have finished up with two stars and excellent prospects.”