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Iain Gillespie: Downfall of the ‘five-star’ principal who could not escape Dundee University financial crisis

Globe-trotting Dundee University principal Iain Gillespie resigned suddenly on Friday.

Dundee University faces a £30 million budget shortfall and principal Iain Gillespie has resigned. Image: University of Dundee
Dundee University faces a £30 million budget shortfall and principal Iain Gillespie has resigned. Image: University of Dundee

The resignation statement of Dundee University principal Iain Gillespie, much like his response to the institution’s funding crisis, did not paint a picture of operational efficiency.

Companies and institutions like Dundee University employ talented staff who are expert in ensuring even the hastiest of resignation announcements are communicated smoothly, inside and outside the organisation.

But in an extremely unusual move, there were no words of farewell or thanks from the under-fire professor – renowned for his globetrotting – let alone an explanation.

Staff at the university were stunned by the development.

Senior figures stunned at resignation

One senior figure admitted they only learned of it when the press release was sent.

Others only became aware of the change at the top when they were contacted by The Courier.

A source said: “He put his resignation in and walked. The first most of us knew was when it hit our inbox this morning.”

Another added: “He’s not had an easy few weeks but no one saw it coming.”

Iain Gillespie came in for criticism over university-funded trips which included stays at a 5-star hotel. Image: Kenny Smith/DC Thomson.

Wall of silence

His sudden departure came one hour after our latest request to interview Mr Gillespie about the stark financial situation facing the university.

We intended to ask how the Scottish Government’s budget, which included a 3.5% rise in funding for home students, would impact the deficit.

The £305k-a-year chief has put up a wall of silence since we exclusively revealed a £30million budget black hole means job losses are “inevitable”.

Perhaps Mr Gillespie felt caught between a rock and a hard place – after all, how do you spin the awkward optics of a pay rise months before telling staff they could be out of a job?

This evasiveness did not just extend to members of the media.

Dundee University principal Iain Gillespie
Iain Gillespie did not turn up to a meeting with local politicians. Image: Kim Cessford/DC Thomson.

Principal failed to turn up to briefing with politicians

The departing principal missed a staff question time event just days after he revealed university employees would face the axe to fill the budget shortfall.

With attendance higher than normal and the meeting moved to a larger lecture theatre, Principal’s Question Time was without its key figure.

High on the agenda would likely have been largesse among management who enjoyed luxury travel on trips abroad at the university’s expense.

And Mr Gillespie was also absent from a regular catch-up with local politicians he was scheduled to attend last week.

His deputy was left to brief them on the university’s money woes.

It did not create a picture of a leadership team in command of a crisis and ready to chart a path to recovery.

Reputation downfall among staff

Prior to this, insiders say Mr Gillespie had been well-liked.

One long-term university employee says: “He was the only principal of the five I worked under that took the time to stop and have a good chat with us.

“He was decent that way and I’ll always respect him for that.

“However, the carry on with expenses and his huge salary is not ok.

“He should have known better.

“He was paid to make the university successful and the buck does stop with him.”

Confidence destroyed

However, his handling of the situation has left those who The Courier has spoken to with little confidence in the university’s senior management.

After the potential job losses were announced, staff across the university reached out to us to share their concerns.

We revealed how some employees were told that if spending was not drastically reduced, the university could face closure within two years.

The warning from the director of estates came as she explained why some were facing a “significant” pay cut.

This may explain why several staff members were angry to learn Mr Gillespie had been awarded a substantial pay rise months before the scale of the deficit was revealed.

Other whistleblowers described a “culture of waste” at the top.

While touring the globe to recruit international students was a key part of Mr Gillespie’s job, the expenses incurred in the process caused disquiet.

The 5-star Grand Hyatt hotel in Hong Kong

Five-star hotel stay

On a trip to Hong Kong last November, the principal travelled business class and enjoyed a two-night stay at the 5-star Grand Hyatt hotel alongside another member of staff.

Another business-class trip was booked for China and Dubai this month, originally at a cost of over £8,000 before “significant savings” were made and the flights re-booked as premium economy— undoubtedly in part due to concern about the optics.

The resignation of the principal follows the sudden retirement of former Scottish Labour leader Wendy Alexander, the vice-principal international, as well as the resignation of the director of finance in August.

It’s also understood the Scottish Funding Council, which looks after 26 colleges and 19 universities, has been in discussions over the cash troubles.

It prompted one insider to claim the university was “in meltdown”.

They said: “We’ve seen three of the most senior people resign within three weeks.

“All of a sudden they just walked out of the door at the same time they are threatening redundancies for a deficit they have not explained.”

Labour MSP Michael Marra, a former employee of the university, said there has been a “disastrous failure of management and leadership”.

Another member of staff added: “We are angry that these people can simply walk out the door with no explanation and no accountability.”

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