THE temporary supervision status imposed by the Housing Corporation on Evesham and Pershore Housing Association following an alleged fraud investigation has been lifted.

Now, the EPHA has been given the all clear to apply for development grants for schemes already in the pipeline.

Ian Hughes, EPHA chief executive, said that following a detailed investigation into an alleged fraud last year and the success in recovering the financial loss, the association quickly introduced a number of additional internal controls and had now satisfied the Housing Corporation that they were working effectively.

He said EPHA had been working with the local authority partners to ensure that the temporary supervision status did not interrupt plans to provide new homes.

Mr Hughes thanked his staff for their help in achieving a very satisfactory outcome and added: "Although we will not forget the lessons of the last year and a half, we can now focus fully upon future challenges rather than the problems and myths of the past."

*A member of staff was dismissed by the association last year after the allegations of fraud. A police investigation into the activities of the employee is continuing.