Running of island-based community landlord 'dire'

Sealladh na Beinne Mòire is the parent company of community landowner Stòras Uibhist

The running of a community-owned landlord in the Western Isles has been described as "simply dire", according to a report seen by BBC Naidheachdan.

Sealladh na Beinne Mòire (SnBM) oversees a number of businesses, including Stòras Uibhist which manages the 93,000-acre South Uist Estate.

A review by Royal Bank of Scotland specialists Mentor has raised concerns around the governance of SnBM, and alleged there was evidence of staff being "bullied and harrassed".

SnBM's board said the organisation's management had been "adversely affected" by recent internal governance and operational matters and was addressing issues raised in the review.

Royal Bank of Scotland said it would not comment without the permission of its client.

Mentor was asked to carry out its review by SnBM subsidiary business South Uist Renewable Energy (Sure) following the resignation of three directors.

In its report, Mentor said: "We report the current governance situation is simply dire with SnBM NEDs (non-executive directors) clearly acting outside of their delegated authority as outlined in the Articles of Association (AoA).

"There is evidence of staff being bullied and harassed and a failure of the board to promptly address serious whistle blowing, bullying and harassment grievances as per Acas guidelines and the company grievance process."

Mentor said it was impossible to measure the "ongoing reputational damage" being done to SnBM's business.

It said the financial impact was estimated to be abut £200,000 and has recommended the costs be properly examined.

'Addressing issues'

SnBM's board said it was taking action following the review.

A spokesperson said: "The board of Sealladh na Beinne Moire acknowledges that the organisation has been adversely affected by recent internal governance and operational issues that have affected the management of the business.

"The board has been addressing the issues raised in the Mentor review as a priority and is focused on ensuring that the organisation has the most appropriate structure for serving its communities, customers and staff."

The spokesperson added: "The board is committed to ensuring that the organisation and its subsidiaries continue to make a major contribution to the economy, culture and well-being of South Uist and its people."

Stòras Uibhist is one of Scotland's largest community-owned landowners.

It was formed out of the community buy-out of the South Uist Estate in 2006.

The estate includes Eriskay, South Uist and parts of Benbecula. It is home to about 3,000 people.