New report into dealings at Toryglen's scandal-hit Thistle Housing

It has now come to light that failed Thistle Housing Association - which botched upgrades to 700 Toryglen homes - paid contractor E-on extra money without taking legal advice.

The Glasgow Times first started telling of residents' woes in 2016 when issues first emerged about the handling of energy upgrade works paid for with £8.5 million of Scottish Government and Glasgow City Council money.

Despite repeated questioning, none of the parties involved have admitted to how much tax payer and resident cash was squandered by the project.

Now a new Scottish Housing Regulator report into the fiasco reads: "Thistle had also made a payment to the major works programme contractor that exceeded the contractual amount due without having first taken appropriate legal or professional advice.

"This had adverse implications for Thistle in a subsequent contractual dispute."

Despite attempts by the watchdog to reverse Thistle's fortunes, the beleaguered organisation was eventually transferred to Sanctuary Scotland, a larger social landlord.

Sanctuary can only say that the financial dealings were before it became involved and Thistle no longer exists.

At the time, the organisation told the Glasgow Times the works would generate no additional costs, despite initially being predicted to take 12 weeks and then running for more than four years.

The regulator's report adds: "Thistle told stakeholders that there would be no additional costs as a result of the required remedial works to the properties included in the major works programme. "The independent review of the works programme in October 2019 confirmed that there were significant unquantified liabilities in relation to a range of necessary roof, render and window remedial works.

"These costs were not accounted for in Thistle’s plans."

The Scottish Housing Regulator has given an update on its findings regarding the Southside housing association.

A report gives detail on multiple, wide ranging failures, including the financial issues at Thistle.

It further adds: "Thistle did not understand its role as a property factor and did not have structures and systems in place which distinguished clearly between this and its landlord function. "Deficiencies in Thistle’s approach meant that it was liable to factored owners for the quality of work in the major works programmes.

"As a result, Thistle carried a significant amount of owners’ debt from both the previous and current major works programmes, which it had made little effort to recover.

"It also covered the significant cost of works to reinstate owners’ gardens damaged during the works programme."

The Scottish Housing Regulator first stepped in to quiz Thistle on the major works programme in November 2016 and in August 2018 appointed a statutory manager and five members to Thistle’s governing body.

Interventions failed and in October 2019 Thistle decided it was in the best interests of residents to seek a transfer.

The transfer to Sanctuary Scotland was completed in March 2021.

Energy-saving works in Toryglen should have taken 12 weeks to carry out but were still underway four years later, causing stress and anxiety to residents.

Thanks to campaigning from locals, issues were brought to public attention in this newspaper and the watchdog parachuted in experienced staff to support inept workers.

The report repeatedly mentions "negative media attention" and that Thistle failed to report this to the regulator.

It says: "Only 6% of around 700 properties had been finished by the intended November 2016 completion date" and makes mention of gas leaks at the site, which we reported at the time.

The report adds: "Thistle had not reported the gas leaks or the negative media attention to us and its governing body in accordance with the statutory notifiable events guidance.

"Thistle’s approach had severely damaged its relationship with local residents and attracted continuing negative media attention.

"Dealing with the media coverage and resident concerns used a significant amount of Thistle’s resources which would otherwise have been focused on addressing its issues.

"The damage to Thistle’s reputation also had the potential to damage the reputation of the sector."

Now that Thistle has been taken over by Sanctuary Scotland, it is no longer registered with the watchdog and the report is the final document to be published about the long running saga.

A spokesperson for Sanctuary Scotland said: "We are continuing to work closely with residents in Toryglen in line with the commitment provided during the transfer of Thistle Housing.

"Millions of pounds are being invested to improve not just housing in the area, but also the community itself."