Catalyst Housing Group (21,000 homes) was downgraded following breaches in the management of its sales and marketing team.

The HA reported iteself to the HCA in late 2016, following “unacceptable breaches of our management processes and controls in sales and marketing”

The regulator inevstigated allegations of “staff misconduct” and “financial impropriety” in thesales and marketing team.

The reports from the investigations uncovered some “weaknesses” in Catalyst’s management processes and controls, the regulator said, “particularly relating to the procurement of services and fittings and sales to connected parties”.

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