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HILARY Peat served as chairman of New Prospect Housing Limited.
Peat quits amid fraud complaints
23/ 2/2006
THE former boss of New Prospect Housing has resigned from the arms-length housing company amid allegations that she committed benefit fraud.
But Hilary Peat says she has a clear conscience and has done nothing wrong.
Miss Peat, 59, an outspoken tenants leader in Little Hulton, was given a crucial role four years ago in turning around the city's ailing housing department.
She was made chairman of New Prospect Housing - a non-profit making firm owned by the council but operating independently in partnership with tenants. It is responsible for the maintenance of the city's 29,000 council homes.
Two years ago Miss Peat stepped down as chairman, saying it was 'unhealthy' for anyone to be in charge for more than two years, but has remained a board member.
However, after being interviewed under caution by investigators from the Department of Work and Pensions she has resigned from the board.
A probe was started after several complaints were made about Miss Peat via a whistle blower's hotline operated by the DWP.
When interviewed she was presented with statements about her made by two council officers, and two executive managers of New Prospect Housing.
The DWP investigation is still ongoing and no decision has yet been made on whether to prosecute Miss Peat.
Miss Peat receives £117 a week in benefits via Disability Living Allowance and Incapacity Benefit.
She has received benefits since 1988, two years after she suffered a severe stroke which left her left side paralysed. She has also suffered two heart attacks.
After initially having to use a wheelchair, she can now walk.
But she suffered a small stroke while driving seven years ago and had to give back a car she had acquired under the Mobility scheme.
She takes medicine for angina, high blood pressure and high cholesterol, plus painkillers for back and hip problems.
Miss Peat said the allegations were based on "speculation, half truths, and omissions."
She said: "My conscience is clear. The sooner this is over the better. People will then know the truth, and perhaps I can get on with my life.
"I was shocked to be summoned to an interview under caution by the DWP.
"I resigned because I would have been left in a very difficult position sitting around a table with two executive managers from New Prospect who gave evidence against me.
"It is disgraceful. I appear to some to be guilty because I don't walk into a room with a strap line on my T-shirt saying 'I'm disabled'.
"New Prospect has been like a child to me. I was there at the beginning and I have watched it grow into the company that it is today. I am deeply upset that I can't continue with New Prospect until it is due to finish in March 2007."
Miss Peat denied being involved in any benefits fraud.
While a member of the parent board and a member of one of five local area boards she received expenses allowances only.
She was a member of the Labour Party, and at one stage wanted to be a councillor. But she now supports the Liberal Democrats.
Councillor Norman Owen, leader of Salford's Liberal Democrats, said: "I have known Hilary to be hard working and on a voluntary basis she has put great effort into New Prospect as a tenant representative.
"I believe that political dirty tricks are afoot."
He said he believed members of the Labour party had triggered the DWP investigation by making complaints.
"This a political witch hunt and I have had discussions with the chief executive of the council to make my views clear. Hilary can be very vocal and has rubbed some of the Labour councillors up the wrong way."
Council leader John Merry said: "I will not comment while an investigation is ongoing."
A spokesman for the DWP said they were unable to comment on individual cases.
Colin Mayhead, chief executive of New Prospect said "It is with regret that we have accepted Hilary Peat's resignation from both our local and parent boards.
"Hilary has served on these boards since the beginning of New Prospect, and we are very grateful for her time and commitment. We all wish her the best for the future."
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24/02/2006 at 16:58