09 October 2009 | Paul Snell
The European Commission has raised concerns that service contracts awarded by Glasgow Housing Association (GHA) did not follow EU procurement rules.
The Commission has sent a "reasoned opinion" to the UK government, requesting information on how the deals were awarded.
The EU says the contracts should have followed public procurement directives. It says GHA awarded a number of service contracts to local housing organisations without a tendering process.
The Commission believes these were essentially public service contracts that fell under EU procurement rules, and should therefore have been put out to tender in line with the directives.
GHA would not comment on the matter.
The UK government now has two months to respond, and if the answer is unsatisfactory the case will be referred to the European Court of Justice.