Dundee University crisis probe launched as cover-up claims set to be investigated

An independent probe into Dundee University’s financial crisis is underway.

The Scottish Funding Council (SFC) has published the terms of reference for the investigation into the institution’s turmoil.

Dundee University, which has a £35 million deficit, has warned 632 will have to be cut.

Last week bosses at the university, including interim principal Shane O’Neill, who later faced resignation questions, were grilled by MSPs at an extraordinary Holyrood committee evidence session.

‘Sudden downturn’

Former Glasgow Caledonian University principal Pamela Gillies will lead the independent investigation.

She wants to find out why university chiefs were “surprised” by its sudden financial downturn.

The probe will look at whether the institution’s senior leadership team tried to “suppress information” about the scale of the crisis.

Investigators also want to know why alarm bells were not raised at the appropriate time.

University bosses will be quizzed on whether internal bodies, such as the court, were given a “false impression” of the institution’s health.

The probe will also look at why the university failed to manage its cash effectively, with an examination of whether budgets built in “unrealistic savings”.

It will ask if investment decisions were “appropriately agreed against their effects on the university’s sustainability”.

‘Encouraged to speak with staff’

An SFC statement read: “The team that will support Professor Gillies will have full access to all appropriate documentation and will have the opportunity to engage with members of the executive team and members of the university court as well as trades unions, regulators, contractors or wider stakeholders.

“Where possible, the investigator and team will be encouraged to speak with former members of staff.

“University staff and students or members of court may request an opportunity to provide evidence to the investigation team.”

Last week it emerged the university could have run out of cash by June without lifeline support.

Another five bosses at the institution during the crisis are set to be quizzed by Holyrood’s education committee, including former international vice principal Wendy Alexander and chief operating officer Dr Jim McGeorge, currently on leave.

The former Scottish Labour leader stepped down from her senior post last year.

Francesca Osowska, SFC chief executive, said: “The University of Dundee is one of Scotland’s world-leading institutions and we are committed to working alongside its senior team as it finalises and delivers a financial recovery plan that will see it return to a position of financial health.

“Alongside this work, it’s vital that the circumstances surrounding the financial challenges at the university are fully investigated, with rigour and transparency, and that lessons are learned to minimise the risk of this situation arising again.

“The appointment of an independent team will ensure a robust process.

“We will share the findings once this work has concluded and expect the university to act on those findings.”