The interim principal of the University of Dundee and two senior members of its governing body have stepped down following a scathing report into the institution’s financial deterioration that led to a £22m government bailout.
The independent investigation into the university’s finances was ordered after it announced there would be hundreds of job losses to address a £35m deficit.
The Scottish Funding Council (SFC) – an arms-length public body of the Scottish government – provided a £22m support package.
Key findings from the Gillies Report for the SFC include poor financial judgment, inadequate management and reporting, and lack of agility by leadership in responding to a fall in income.
Interim principal and vice-chancellor Professor Shane O’Neill quit in the wake of the report.
The university also said Tricia Bey, acting chair of the university court, and Carla Rossini, convenor of the finance and policy committee, who were both due to step down this summer, are now bringing this forward and leaving with immediate effect.
Professor O’Neill said: “It is with a very heavy heart, having committed myself fully to the recovery process over these past months, that I have decided to step aside from my position and will be leaving the university.
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“It is important that the university can move on and I recognise that this will be easier with new leadership.”
Members of the university executive group (UEG), which included the “triumvirate” of Professor O’Neill, former principal Professor Iain Gillespie and ex-chief operating officer Jim McGeorge, were found to have “failed” last year to “properly respond to the worsening situation” and disclose the looming crisis to other university officials.
The report found the root causes of the financial issues included the decline in overseas postgraduate students coming to the university and the growth agenda proposed by leaders.
According to the report, the “credibility and accuracy” of reports given to senior leaders regarding the financial situation were “poor”.
The report said there was “insufficient corroborated evidence” to suggest members of the executive team had sought to suppress information about the scale of the crisis, while there was “circumstantial” evidence.
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Prof Gillespie, who left the university last year when news of the crisis became public, was described as someone who “did not welcome difficult conversations”.
An email sent by the former principal in March of last year, claiming the university was “moving into a surplus position”, was branded “misleading” by the report, while his management style was criticised, particularly in how he dealt with women.
The report stated: “Female members of staff in particular reported being spoken over, sidelined or discussed in public as being obstructive if they attempted to be heard, and there were reports that the university policy on dignity and fairness was not upheld in a number of instances.”
Dr Ian Mair, deputy chair of court, the university’s governing body, said: “There is much in this report on which we have to reflect. We will take a short time to digest the full implications of the report but we will act on the findings.”
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Education Secretary Jenny Gilruth said it was “evident” from the report’s finding that “there are serious questions which must be answered by the University of Dundee’s management team”.
Ms Gilruth added: “Whilst the university is an autonomous institution which is ultimately responsible for decision-making around its day-to-day operations, the Scottish government will do everything possible to secure a positive future for Dundee.
“I will be updating parliament with a more detailed statement on the findings of the report and on future government support next week.”
MSP Miles Briggs, the Scottish Conservatives’ shadow cabinet secretary for education, branded the report’s findings “damning”.
He added: “The report is scathing about the inexcusable failures by those in leadership roles.
“It is now essential that this is a watershed moment to ensure no Scottish university will ever face such a situation in future.”
