A WATCHDOG has put an Erewash housing association under special supervision over concerns about its management.

The Tenant Services Authority has also appointed two people to the board of Three Valleys Housing Limited.

It follows news that the organisation's chief executive, Paul Eastwood, and finance director, Nasreen Hussain, had been suspended amid concerns about the number of staff and board members leaving.

Now, the authority has announced that the association, which manages nearly 5,000 homes in Derbyshire, will be ordered to form a partnership with another housing association to help its management.

Peter Marsh, the watchdog's chief executive said: "We have been closely monitoring Three Valleys Housing Group and have decided that we need to take action to strengthen their board while they look to join another housing association to secure the best outcome for current and future tenants."

The authority said it was a partnership arrangement and not a merger.

The length of the arrangement is still yet to be decided but the authority said it would have to be in place until its concerns were resolved.

The two appointees to the association's board are Val Hammond, chair of Acclaim Housing Group, from Matlock, and Lakhbir Jaspal, deputy group chief executive of West Midlands-based Accord Housing Group.

Bob Hingston, chair of Three Valleys Housing, said: "We welcome the support of the Tenant Services Authority. The additional appointments it has made to our board complement the new members we have also recently recruited.

"Together, we are confident that these additional skills and expertise will strengthen the leadership of the organisation for the benefit of customers and staff. I wish to reassure all customers that it is business as usual at Three Valleys and that they should see no change in their everyday service."

In December, the Derby Telegraph reported that concerns had been raised by unions about the high number of staff and board members leaving the association.

Earlier in the year, the board reduced from eight to five members, but they were later replaced.

A member of staff also left in March and was replaced. It prompted the authority to order an independent review of the allegations.

That was completed in January and the board met to discuss its results. The chief executive and finance director were suspended. Mr Hingston said the suspensions should not be seen as any admission of fault.