POLICE HAVE been asked to investigate one of Scotland’s largest colleges, amid allegations it fraudulently obtained European funding that could run into millions of pounds.
Adam Smith College in Kirkcaldy yesterday confirmed it has suspended an undisclosed number of staff after an audit by the Scottish Government indicated the institution will have to repay a “substantial amount” of money claimed under European Structural Funding.
The college’s interim principal, Martin McGuire, said the action was being taken following an investigation by auditors into European project funding received by the college between 2007 and last year.
In a statement he said: “The college has not seen a copy of the report produced by the auditors; however, top line findings have been verbally provided, which have resulted in the decision to suspend those staff members who worked in the relevant areas as a precautionary measure, with immediate effect.
“The college plans to fully investigate the issues arising and identify whether any disciplinary proceedings are necessary.
“The suspension of a staff member in these circumstances is consistent with the college policy on such matters and does not in any way prejudge the outcome of a disciplinary investigation.
“In addition to the college investigation, the Crown Office has asked the police to conduct an investigation into potential fraudulent activity. The Government audit has indicated that the college will have to repay a substantial amount of the monies claimed although the exact figure is still not known at this time.
“As interim principal, I am determined to address and resolve these issues as quickly as possible and to ensure that high-quality learning and teaching at the college continues to be a priority for staff.
“The board of the college is fully supportive of the actions being taken. We recognise this is a critical time in the calendar for students and it is vital that our staff and students are supported during this time in order to ensure day-to-day operations at Adam Smith continue to be business as usual.
“We are in close liaison with Scottish Funding Council and Scottish Government officials and will support the police during their own investigation process.
“At present, timeframes are unknown in terms of announcing final outcomes, but we will ensure there is regular communication to our staff, students and the local community,” Mr McGuire said.
Last year the college’s then interim principal, Iain Harrington, was suspended from his post on the orders of the college board while the investigation into the potential misuse of European funding was carried out.
Mr Harrington had replaced former principal Dr Craig Thomson, who resigned in March, a week after he had been suspended indefinitely when the Scottish Funding Council launched a separate investigation into allegations of bullying, intimidation and the misuse of funds.
The college is in the process of merging with Carnegie College to form a new regional college for Fife.
Adam Smith College confirmed yesterday these were “fresh” staff suspensions but said it could not elaborate on numbers or who had been suspended.
The college said it also could not confirm the alleged fraud sum as it had not yet seen the report.
Kirkcaldy SNP MSP David Torrance welcomed the investigation.
He said: “It’s extremely sad that the police now have to investigate any potential fraud that occurred in the college since 2007.
“I hope this matter can be brought quickly to a point where it finishes and the college can get on with doing what it does best teaching young people from across Fife and Scotland.
“At the end of the day, I believe that Martin McGuire is the person to take forward the college, and to bring back its reputation as one of the leading colleges in Scotland.”
A Scottish Government spokesman said: “In early October allegations that European Structural Funds were being mismanaged at Adam Smith College led us to instigate an audit investigation.
“The findings from that investigation were shared with the Crown Office. The Crown Office have decided to ask the police to investigate the matter and report to them.
“The Scottish Government has robust measures in place to monitor the use of European Structural Funds and regularly checks that projects and grant claims comply with the regulations.
“We cannot comment further on this individual case.”
A spokesman for Fife Constabulary said: “The Crown Office has asked us to carry out an investigation into allegations about funding at Adam Smith College.
“As this is at a very early stage, we are unable to give further details at this time.”
malexander@thecourier.co.uk