University principal resigns after criticism in report into financial crisis

Independent

a day ago

The interim principal of the University of Dundee has resigned after the publication of a report on the financial crisis which has engulfed the institution.
Professor Shane O'Neill apologised to those impacted by the issues facing the university – which last year announced it was wrestling with a £35 million black hole.
The news of his resignation came minutes after a report by former Glasgow Caledonian University principal Professor Pamela Gillies hit out at Prof O'Neill and former leaders of the university for their actions in the lead up to the announcement of the crisis.
Members of the university executive group (UEG), which included the 'triumvirate' of Prof 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'.
It said: 'Information was neither collated nor presented in a manner that easily supported a complete, full and accurate understanding of the position on a timely basis.
'This applied equally to income and capital expenditure and their respective impacts on cash.'
The report added senior officials at the university could have accessed such information 'with appropriate challenge'.
In a statement, Prof 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.
'It is important that the university can move on and I recognise that this will be easier with new leadership.
'I have done all I can to set the university on a path to recovery, engaging with internal and external stakeholders to find the best way forward.
'I had hoped that we would be further along that path by now, and it will now be for others to steer that course into the future.
'I am truly sorry for the impact this financial crisis has had on many people, particularly our staff and students.'
Acting chair of the university court Tricia Bey and the convener of the finance and policy committee, Carla Rossini, also announced on Thursday they will bring forward their departures and leave immediately.
While there was criticism of the available information, the report did, however, find 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.
The report concluded the internal systems of the university had 'laid the foundation' for the near-collapse of the institution.
'The magnitude of the financial situation the university properly identified from November 2024 and onwards was not simply a function of poor student recruitment over the preceding 15 months,' the report found.
'The ineffectiveness of internal systems and control in FY24 laid the foundations for the financial collapse in FY25.'
Prof Gillespie – who left the university last year when news of the crisis became public – was also heavily criticised in the report.
An email sent by the former principal in March of last year, claiming the university was 'moving into a surplus position', was described as 'misleading' by the report, while his management style was criticised, particularly in how he dealt with women.
Prof Gillies's report found: 'A considerable proportion of submissions from individuals from across the spectrum of roles in the university covering professional, administrative and academic positions commented on the way in which dissent, or challenge, was routinely 'shut down', particularly by the principal who, we understand, did not welcome difficult conversations.
'Few dared to speak truth to power, although one member of UEG (VP (International)) is reported to have challenged the principal in a variety of different settings.
'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.'
The vice-president referenced was former Scottish Labour leader Wendy Alexander.
Education Secretary Jenny Gilruth said there are 'serious questions' to be answered, pledging to give an update to Holyrood next week on the report and any future Government support.
'It is evident from the findings that there are serious questions which must be answered by the University of Dundee's management team,' she said.
'This is obviously a difficult time for the university but I welcome the decisive action which has been taken with the changes in leadership.
'It is vital that we now move to a period of stability to ensure the institution can move forward and thrive into the future.
'The report recognises the vibrant community of committed staff and students – they remain our priority during this challenging period.
'Whilst the university is an autonomous institution which is ultimately responsible for decision-making around it's day to day operations, the Scottish Government will do everything possible to secure a positive future for Dundee.'