… Regulation must have ‘sufficient independence and robustness to withstand industry pressures’
The former ARMA regulator Sally Keeble resigned from her post last month because she claims the trade body scrapped a regulatory case against Warwick Estates over a lift shaft fatality.
Mrs Keeble, a Labour MP for 13 years and former leader of Southwark Council, claimed that “a properly constituted regulatory panel” was scrapped before considering a complaint against Warwick Estates Property Management Limited over the death of plasterer Craig Jones, 27, in a lift shaft accident.
Mr Jones, who was trapped with a friend on a Saturday afternoon, was killed when he attempted to climb out of a broken down lift at Marsden Houses in Bolton in September 2014.
A report of the death can be read in the Daily Mail here:
Man plunged five floors to his death after prising open lift doors
Craig Jones got stuck in lift with friend at block of flats in Bolton city centre Believed they prised open doors after lift got stuck between 4th and 5th floor Plasterer Mr Jones fell down lift shaft to his death while trying to climb out 27-year-old was taken to Salford Royal Hospital but he died from his injuries A man who tried to climb out of a broken down lift after prising open the doors ended up falling five floors to his death down the lift shaft.
After prosecution in December last year Warwick Estates Property Management Limited was fined £120,000 and ordered to pay costs of £45,000.
The reasons for Sally Keeble’s resignation have prompted a surge in readers’ comments on the LKP website.
In a statement to LKP, Sally Keeble said:
“The comments on the LKP website are a salutary reminder of the need for transparency in matters that affect public well-being.
“The reason for standing down before the end of my contract was because of a decision by ARMA to cancel a properly constituted regulatory panel meeting convened to consider a disciplinary case which involved a fatality.
“ARMA’s system of self-regulation of the residential management industry was an important step that should have provided greater protection for the public and for the many firms which aim to provide good services in a fiercely competitive commercial setting. It filled a vacuum left by the lack of statutory regulation of the sector, and was a brave initiative.
“However, any such system must have sufficient independence and robustness to withstand industry pressures and be able to deal with the most serious cases, including one that tragically involved a fatal accident.”
The Health and Safety Executive report into the death of Craig Jones can be read here
Speaking after the hearing in December, HSE inspector Sarah Taylor said: “The problems with this lift were well known and if Warwick Estates Property Management Limited had fulfilled their health and safety responsibilities Craig Jones would probably be around to celebrate Christmas with his family this weekend.”
It is understood that the regulatory process of ARMA was in disarray before this case as a result of a separate legal action by an as-yet unidentified member of the trade body which resulted in a substantial legal settlement.
As a result, the role of the regulator was under review.
ARMA has as yet declined to comment on either issue.
It is again invited to comment.
Related posts:
RICS fines Warwick Estates £20,000 over lift shaft fatality – after ARMA ‘blocked its regulator from hearing the case’
More farce than Blackadder’s court martial: ARMA claims its regulator ‘retired’
Former Labour minister Sally Keeble is new ARMA regulator
ARMA regulator Sally Keeble outlines five areas where statutory regulation is needed in leasehold
ARMA’s self-regulation in disarray after member sues the organisation and Sally Keeble resigns
ARMA should be disbanded without delay. M.s Keeble’s damning statement highlighting ‘ARMA’S’ lack of independence and willingness to deal with it’s rogue Members reinforces what LKP and beleaguered leaseholders have known since its inception. IT IS NOT INDEPENDENT!
It is staggering that ‘ARMA’ seems to have sunk so low as to close down a meeting to convened to consider bringing a disciplinary case against one of its members.
It begs the question-does ARMA consider the fees of it’s members more important then bringing a disciplinary case ,where a man lost his life while attempting to climb out of a lift that had not been properly maintained by one of its members?
I know what I think………
Sally Keeble’s statement is very welcome. Sally was obviously the right person for the position of Regulator. But a firm and fair Regulator does not suit ARMA if it means action against one of their members.
Sally’s statement ties in with my communications to ARMA over the past few years.
1 It is a Trade organisation financed by its members.
2 Therefore it is unable to take serious action against them. As is clearly demonstrated in serious cases like Price Fixing and a fatal accident.
3 Many of us hoped that ARMA Q would fill the gap as Sally has stated.
But right from the start, in the way it was frivously introduced, we had our doubts. And the feeble way they appear to deal with members transgressions only confirms this.
They need a big shake up, let’s hope the next Regulator they employ is given the powers to achieve it.
After the Tchenguiz Family Trust had to divest themselves of the Peverel (now known as Firstport) Group as a condition of Peverel/Firstport coming out of administration, they had hoped to buy Peverel/Firstport back to re-unite the freeholding and management companies.
It has been rumoured that it was to be re-named as ” CONFLICT OF INTERESTS R US!”
Reports are that since the enforced separation and following the failure of Tchenguiz to re-unite the companies that led to the departure of the old guard at Peverel/Firstport (many of whom are to be found at Freemont Property Managers) relations between Freeholder and managing agent have become strained, with the freeholder’s agent (Estates & Management) taking back much of the work previously carried out by Peverel/Firstport and thereby reducing Peverel/Firstport’s income.
Much of the insurance work being but one example.?
I addition Estates & Management have been carrying out resident surveys to ascertain as to whether those residents are satisfied with the service they receive from Peverel/Firstport?
If not Estates & Management will “suggest” alternative managing agents.
It has also been the case that if a Right To manage action is being prepared, Estates & Management have offered not to resist a Right To Manage , if residents agree to an appointment of Estates & Management’s choice?
Thus far the three favoured managing agents have been identified as being Rendall & Rittner, Freemont Property Managers and Warwick Estates.
Ironically at a time when Sally Keeble resigned over the lack of an inquiry into the circumstances that led to the fatalities at the Warwick Estates managed development for which they were fined £120,000 plus £45,000 costs Warwick Estates were” Highly Commended” in the Larger Managing Agent of The Year category “Following a rigorous judging process by a panel of independent judges” at the ARMA Ace awards!
Yes, it would be rather embarrassing for ARMA if they took disciplinary action against a company they had just Highly Commended. But there should be no room for sentiment.
I notice that the Managing Director of First Port is to be the Moderator at the forthcoming ARMA Conference, quite a prestigious appointment.
So can we now assume that FP will become immune to any disciplinary procedures in the near future.. I am not of course suggesting that FP would ever break any rules.
Very Interesting, Michael.
As you are probably aware it is now over three years since Firstport retirement applied for Firstport accreditation and still they have not even been afforded basic associate membership?
Firstport Bespoke (formerly Consort Property Management) has also won at the ARMA Ace awards in the category of Best Service Charge Accounts(I kid you not!)
How fortunate that Sue Petri a senior director at Firstport Bespoke just happens to be a member of the ARMA Governance board?
I notice that Sue was with Mainstay before going to FP., I understand that they are also not a favourite of Leaseholders.
Nevertheless she has been elected as a Governer of ARMA by the ARMA members, so she has some fans.
It all STINKS!! Isn’t a ‘ Major Player’ in Mainstay the wife of Roger Southam who in turn is the Chairman of Lease? PURLEEEEZE. That is wrong on so many levels!!
ARMA need to be junked without delay. It leads guillable leaseholders to believe that they are a regulatory body with leaseholders interests at heart. THEY ARE NOT.
ARMA should be prosecuted under the Trades Description Act.
Junk ARMA and introduce :
STATUTORY REGULATION FOR MANAGING AGENTS.
REMOVE LEADEHOLD FORFEITURE FROM THE STATUTE BOOK.
I believe Sue Petri’s father was a director of Mainstay.
Listen Chaps (,Messrs Epstein & Holland
I shall say this only once ( maybe)
I reckon this recent ‘ scandal’ at ARMA” is going to be its ‘ Bell Pottinger’ moment. It seem’s to me that ‘ARMA’ have lived “HIGH OFF THE HOG” for long enough and to the detriment of leaseholders.
ARMA must be junked without delay. It seems to me that they are KNOWINGLY or unknowingly aiding and abetting their shyster managing agent members in the exploitation of innocent leaseholders.
This cannot continue
ENOUGH IS ENOUGH!!!!
ENOUGH O
Reply
Have never been impressed oneself by ARMA as an effective regulator of the management industry. Many moons back when a jaded ‘enforcer’ of tenure rights working for an LA, whilst true LAs seemed never to stomach a legal fight with freeholders or their agents –there being enuff literal harassment and illegal evictions to deal with — ARMA seemed to me to have little credibility. That was back when Noah was an apprentice carpenter. I believe they tagged another letter to their name since? Made all the difference I’m sure.
Personally I blame governments for window dressing having industry self regulators that can be pointed to for avoidance of real enforcement.
If ARMA literally had eight recorded complaints in a year about an industry seemingly mistrusted by a majority of leaseholders (even Lease’s 2016 survey showed the level of discontent and Which did a survey with similar results), I ponder if perhaps Nelson’s famous patch may be afoot?
I fondly recall ringing ARMA once to try to complain and being told to take the problem to my then ARMA agent. We went RTM.
Those who pay the piper call the tune, innit. How can any regulator be credible when regulating an industry that funds its existence whilst also managed by industry insiders?
Beats me anyway.
There again, how many RICs persons chair property tribunals where leaseholders go to complain about RICS members?
Have a dog foul a pavement and the authorities will set up a security service type surveillance on the owner: “I have eyeballs on fresh poo… Repeat, I have eyeballs on fresh poo. Will collect evidence, over.”
Our values are somewhat skewed.
I honestly believe that ”ARMA” has similarities to the court of the Borgias e.g. It’s pure Poison, Poison to Leaseholders. Also it’s incestuous relationship with spivvy Managing Agents who should be having their collars felt is most unedifying.
Hopefully this utterly useless embarrassment of a ‘regulatory ‘ organisation will get junked – SOON!!!!
,
ARMA is toast!
As I mentioned in a previous post- It’s as trustworthy as s snake in a hamster cage!!!!
It needs to be junked NOW!
ARMA is toast!
As I mentioned in a previous post- It’s as trustworthy as s snake in a hamster cage!!!!
It needs to be junked NOW!