GreenSquareAccord's latest Governance Failure 

Ruth Cooke's Leadership Again Under Scrutiny

Beyond my own concerns, regulatory bodies and residents themselves have continually raised alarms about the behaviours, attitudes, and abilities of GSA. With the Housing Ombudsman, Regulator of Social Housing, and now the global integrated risk assessment firm Moody’s, it is reassuring to know that I am not alone in my criticism of my landlord, and concerns are being raised far and wide across the sector.

GreenSquareAccord's recent credit rating downgrade by Moody’s exposes glaring deficiencies in its governance and financial management. Led by CEO Ruth Cooke, the organisation faces mounting criticism for its inability to address systemic issues and safeguard the interests of its stakeholders. GSA's latest governance failure under Ms. Cooke's leadership highlights the detrimental impact on residents and the broader community.

Moody’s Downgrade A Consequence of Inept Governance?

Moody’s downgrade of GSA's credit rating to Baa1. GreenSquareAccord's interest cover covenant headroom ranks among the lowest compared to its UK-rated peers. Consequently, Moody's anticipates that GreenSquareAccord will depend on fixed asset disposals to uphold covenant compliance over the next few years and to finance its capital expenditure, including investments in energy efficiency.

Cash from fixed asset sales is forecasted to escalate to £55 million by fiscal 2026, a substantial jump from £12 million in fiscal 2023. While these sales are intended to support capital expenditure, relying on fixed asset sales for roughly 50% of funding presents a precarious and unproven strategy. There exists a significant risk that anticipated cash inflows may fail to materialise should sales encounter delays or experience price downturns. Despite the daunting challenges posed by the scale of fixed asset sales, Moody's grimly notes that while the group has managed to meet its fiscal 2024 budget, only about half of fiscal 2025 sales have been identified, with efforts to expand its team to meet higher disposal targets still ongoing.

In financial and accounting contexts, "disposal" typically refers to the process of selling or getting rid of an asset. When an asset is disposed of, it is no longer owned or held by the entity, and it may be sold, scrapped, donated, or otherwise removed from the organization's books. Disposal can involve various types of assets, including property, equipment, vehicles, or investments. As I’ve previously warned, by not providing upkeep to our homes as agreed to in the service charge agreement, GreenSquareAccord will now look to offload these dilapidated properties, our homes.

The agency's assessment of "very tight covenant headroom" underscores the governance risk plaguing GSA, indicating a fundamental lack of oversight and strategic foresight. Ms. Cooke's failure to steer the organisation away from financial distress raises serious doubts about her competence and suitability to lead.

Ms. Cooke’s tenure as CEO has been marred by a series of setbacks and downgrades. Her track record, marked by persistent financial turmoil and regulatory breaches, underscores her inability to effectively manage the organisation. Despite assurances of stability post-merger, GSA's downward spiral under Ms. Cooke's leadership has again eroded confidence in her ability to chart a viable path forward.

The board's complicity in GSA's governance failure cannot be overlooked. Board members bear a collective responsibility for overseeing the organisation's strategic direction and mitigating risks. However, their failure to hold Ms. Cooke accountable for systemic shortcomings raises serious concerns about their effectiveness and independence. By enabling Ms. Cooke's leadership failures, the board has abdicated its fiduciary duties and jeopardised the organisation's long-term viability.

In Conclusion

GSA's mismanagement extends beyond financial metrics, with dire consequences for residents and service users. The decision to sell failing care and support homes and services reflects a callous disregard for the well-being of vulnerable individuals who rely on these essential services. Ms. Cooke's prioritisation of financial interests over the needs of residents underscores her misplaced priorities and lack of empathy. By neglecting its duty of care, GSA has betrayed the trust of those it purports to serve, further exacerbating the humanitarian crisis unfolding under Ms. Cooke's watch.

As GSA grapples with the fallout from Moody’s downgrade and mounting public scrutiny, its future remains uncertain. Ms. Cooke's reassurances of a turnaround ring hollow in the face of entrenched governance failures and systemic weaknesses. Without meaningful reforms and decisive action to address underlying issues, GSA risks further erosion of trust and credibility. The road to recovery will be long and arduous, requiring a wholesale reevaluation of leadership, governance structures, and organisational priorities.

GreenSquareAccord's governance failure under Ms. Cooke's leadership is a clear sign of corporate hubris and managerial incompetence. Each misstep underscores the human cost of organisational neglect and mismanagement. As stakeholders demand accountability and transparency, Ms. Cooke and the board must reckon with the consequences of their actions and commit to meaningful change, beyond the overused and lacklustre rhetoric updated with each failure to bring her corporate strategy to life. Only through decisive reforms and a renewed focus on stakeholder interests can GSA hope to regain public trust and emerge as a leading housing provider. Until then, we must remain critical and skeptical.