The day-to-day responsibility for the prevention and detection of fraud rests with the Executive/Non-Executive Teams who are responsible for identifying the risks to which systems, operations and procedures are exposed and developing and maintaining effective controls.
The Company Act 2006
'directors of a company must exercise reasonable care, skill and diligence'
Matthew Sugden is, ultimately, responsible for the failure to have put in place any checks on repair costs. His failure allowed the 'sustained overcharging' by ESH Construction.
He also failed to instigate any enquiries into serious allegations of overcharging and fraud.
Matthew Sugden had been aware of the concerns over ESH Construction. Numerous emails had been sent all of which were ignored. Some are published on this site.
What is disturbing is that Matthew Sugden signed off the figures presented to Grant Thornton, their external auditor for the years 2021 and 2022. This is despite having being informed of suspected fraudulent practices by ESH Construction.
Paul Dolan, all executives and board members responsible for governance had been made aware of suspected fraud prior to Matthew Sugden signing off those accounts. If Matthew Sugden, as he declares in that signed statement, enquired of all those concerned of suspected fraud, not one of those members declared that fact.
'We enquired of management and those charged with governance whether they had any knowledge of actual or suspected fraud.'
Grant thornton - external accountants.Signed Matthew Sugden 7th July, 2021
'The Board is responsible for keeping proper accounting records and for taking reasonable steps for the prevention and detection of fraud and other irregularities'
Signed Matthew Sugden 9th Aug, 2022
The Chief Executive Paul Dolan has responsibility for ensuring proper systems of control and both risk assessment and risk management are established and maintained.
On 27th January 2021 an email was sent to Paul Dolan titled negligence and criminal proceedings.
That email left no doubt as to the nature of overcharging to Lambert Court. It drew direct focus onto the nature of the repairs work to the estate and made it clear as to what the issues were.
The relevant points from that email are printed below.
‘One of our main concerns is with the lack of accountability in regard to repair works and invoicing.’
‘The fact that numerous invoices are raised by a multitude of various sub contractors as well as ESH themselves with little checks in place to prove either the work has been done or the correct invoicing sent out is appalling.
Accent do not need to care whether the invoicing is accurate as the cost is simply passed on to the residents. There is no accountability on the part of Accent. There is no leadership.’
Rachael Maskell, the Member of Parliament for York, has sent two further letters addressing the same issues.
Paul Dolan failed to reply.
CLARE STONE
Clare Stone Director of customer experience.Clare Stone was copied into an email sent 27th January 2021 to Paul Dolan CEO.
No action was ever taken.
In May 2022, after every reasonable attempt had failed to get Accent Housing to address the issue of the persistent financial abuse of residents contact was made with the MP for York Rachael Maskell to discuss the problems residents faced.
On 11th June 2022 Rachael Maskell contacted Paul Dolan the Chief Executive of Accent Housing.
That letter outlined many of the problems residents have faced under the management of Accent Housing. It also exposes the inadequacies of the regulatory process and legislation that exists to protect residents. Something that Accent exploit.
The specific issue over the repairs service provided by ESH Construction was highlighted. Part of that letter is reproduced below
'The Contracts manager, Kevin White, who was almost solely responsible for signing off repair works completed by the contractor ESH Construction resigned. Mr Longstaff says he had emailed Kevin White to request confirmation of any invoice for repairs being checked prior to payment by Accent.'
'Mr Longstaff says ESH Construction offered a 4.9% reduction on the schedule of rates they would charge for responsive repairs to Accent. However, this has not been applied to many of the repairs right across the region and the residents are being charged the full amount.'
'The end of year statement simply shows the cost of 'repairs' with no breakdown of costs or further information provided.
'A further concern is that ESH cherry pick the highest schedule of rates for repair work and yet undertake the works charged at the lowest level.'
'Mr Longstaff alleges this could be fraudulent.
Paul Dolan failed to reply. A second letter had to be sent which is still awaiting a response.
Management