For no apparent reason, the AGM was moved forward a fortnight and set in the middle of the afternoon. It was held again in secret, except for a handful of shareholders who legally cannot be left out.
The trouble started with the approval of the minutes. At last year's AGM, the managing director was asked what would happen if PCHA, which is loaded with debt, got into trouble. There was discussion over tenants apparently left for years in temporary housing, and these discussions, although freely admitted, were omitted from the minutes of the 2006 AGM. The Company Secretary, Mr Steve Robertson, was not willing to correct them.
Asked again about the effect on Pathmeads tenants of PCHA defaulting, Mr McGregor, in the rather peculiar absence of the Chief Accountant, Mr J. Lappin, stated categorically that whatever may happen, there will be no impact of any sort on Pathmeads tenants.
He denied that any tenants were leftfor extended periods in temporary housing, and denied legal responsibility for them anyway. (Certainly, he will have a moral duty, but that argument would not get anyone anywhere).
Mr McGregor said that there was a very high level of tenant satisfaction. When asked why Pathmeads was booted out of a management contract for an estate in Marylebone, owned by Westminster council, he attempted to make light of it, saying "there were issues getting water and gas to residents", and that "an alternative management arrangement" was in position. (With Pathmeads removed, this is likely to be true). What this means is that Pathmeads and its managment are in denial of what has happened here, and that nothing will be learned or gained from this fiasco.
Housing Corporation guidelines expect new auditors periodically. This happened.
Housing Corporation guidelines on senior managers sitting on the board were not so lucky.
The Corporation was defied, along with the National Housing Federation. The managing director, Tom McGregor, now sits on the Management Board, against the advice of these bodies.
Tenants suffering from poor maintenance and conditions will be interested to note that the Pathmeads accounts show that it made a profit for the year of £6,083,000. In other words, it made well over £16,000 profit per day, every day, including Saturdays and Sundays.
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