Salford Council is currently investigating its housing company, Dérive, following concerns raised during a financial review. Established in 2017, Dérive is fully owned by the council and has managed over £10 million in public funds to date.
Investigation Overview
Concerns emerged regarding potential financial mismanagement or misconduct. The council’s investigation began after officers identified irregularities in Dérive’s accounting records. Questions have been raised about the accuracy and completeness of these records.
Leadership Changes
Since February, several senior figures at Dérive have resigned. This includes five directors and one secretary, according to records from Companies House. Dérive has also missed its deadline for submitting annual accounts by one month.
Among those who stepped down is Councillor Tracy Kelly, the deputy mayor and the housing portfolio holder. Her resignation in February is understood not to be related to the ongoing investigation. Former council leader John Merry and Phil Cusack, chair of Salford’s planning committee, also resigned in March. These individuals are not under investigation.
Concerns from Councillors
The situation has sparked controversy within the council. A senior councillor expressed frustration that elected members had not been updated about the investigation. Concerns were raised about the lack of communication, questioning if important details had been concealed.
In an email dated April 29, Salford Mayor Paul Dennett assured councillors that “nothing is being hidden.” He stated that formal investigations are underway, supported by third-party professionals focusing on governance, regulatory compliance, and financial integrity.
Council and Regulatory Response
The Salford Council has taken immediate action by reviewing Dérive’s governance and operational structures. The council has also notified the Regulator of Social Housing, a government entity responsible for overseeing social housing standards. The ongoing audits and checks will ensure compliance with established governance requirements.
- Dérive established in 2017 with £2 million of Section 106 funds.
- Primarily focused on addressing a housing waiting list exceeding 5,000 in Salford.
- Delivered 119 social rent homes last year, with additional projects underway.
The Regulator of Social Housing is in communication with Dérive and Salford City Council but has not commented further on the details of their investigation. Meanwhile, Greater Manchester Police confirmed they are not involved in the matter.
Commitment to Affordable Housing
Despite the internal challenges, the council emphasizes its commitment to providing affordable housing. Projects initiated by Dérive include over 100 social rent homes across various locations. The council reassures residents that services will remain unaffected as it continues to address the pressing need for affordable housing in the community.
