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BBC News
3 days ago
- Business
- BBC News
Dundee University admits 'clear failings' over damning report
Dundee University has published its response to a damning report into the institution's financial collapse that led to a £22m government university said that the Gillies Report, which was published in June, had highlighted "clear failings in financial monitoring, management and governance".It has issued a 65-point action plan including daily cash flow monitoring, cancelling or deferring non-essential capital projects, and training in "financial literacy" for all members of the university's executive group, court and university also said that it had received 434 applications for its voluntary severance scheme. Dundee University said the independent report by Prof Pamela Gillies had been a "chastening experience and triggered a time for deep self-reflection". The university, which currently faces a £35m deficit, said that its "proposed route forward" would require "significant additional public funding".It received £22m from the Scottish Funding Council in February and will receive an additional £40m from the Scottish government over the next two academic university is looking to shed 300 roles through the voluntary scheme, after initially forecasting about 700 jobs would go. The Gillies Report savaged the university's former leadership team, including Prof Iain Gillespie, who resigned last found that Prof Gillespie, ex-interim principal Prof Shane O'Neill, and previous chief operating officer Jim McGeorge had acted as a "triumvirate", making decisions among also questioned the quality of information about the university's finances given to other senior report said university bosses and its governing body failed multiple times to identify the worsening crisis and continued to overspend instead of taking said the problems were "self-inflicted" and it should have been clear to senior members of the university that its financial position "was worse than presented". The university has now published its official response to the acknowledged there had been "a complete breakdown in cash management and expenditure control at the senior level of the organisation".It added: "While there were significant external factors, which had affected the higher education sector across the UK to varying degrees, the university's response to these, and responsible management of our finances, had fallen well short of the standards that everyone should have expected."However, it admitted that the situation was exacerbated by "over-reliance on the director of finance for strategic financial decisions, without sufficient independent challenge".It said members of the University Executive Group (UEG) were focused on their own portfolios, with "limited cross-functional financial accountability".The university said that the Gillies Report was clear on the "dominant nature of the most senior leadership in the university." It added: "This led to a hierarchical culture, characterised by hubris, the suppression of dissent, and fear of speaking out, resulting in an inability for staff to challenge constructively." 'Chastening experience' The university is proposing a series of actions that will be taken in the short, medium and long term, designed to ensure the university has a sustainable include daily cash flow monitoring and the implementation of further cost controls to reduce discretionary spending, such as principal Prof Gillespie was criticised last year for making costly trips abroad, including a £7,000 trip to Hong university said a new monthly management reporting process had been implemented to ensure that "management accounts are formally presented to senior management and the university court." There are also proposals to overhaul the court and to appoint a permanent principal with "experience of transformation and change and with a people-focused leadership style".It will also schedule a programme of monthly "town-hall" events to listen to the "concerns, hopes and ideas of staff and students."The response concluded by saying: "The circumstances surrounding the Gillies Report have been a chastening experience and triggered a time for deep self-reflection. "They present a unique opportunity to renew and refresh the university's covenant with its community—staff, students, alumni, the court, research partners, third party stakeholders, and the city of Dundee."
The Herald Scotland
26-06-2025
- Business
- The Herald Scotland
Dundee University principal: 'I'm not corrupt, I'm incompetent'
The University of Dundee had to be bailed out by the Scottish Government due to a £35m black hole in its finances, with a total of £62m provided this year. Professor Gillespie was criticised heavily in the Gillies report into the crisis which found he had an "overbearing leadership style" and disliked being questioned or having potentially awkward confrontations. Read More: Hearings are being held in the wake of the report, Amanda Millar, the former chair of the university court, former finance chief Peter Fotheringham and Dr Jim McGeorge, the former chief operating officer, gave evidence yesterday - something Professor Gillespie said he did not watch. The principal "tended to control the narrative to the court and elsewhere", painting a picture of all being well at the university, the report found. It said: "There were many reports to this investigation that the Principal frequently demonstrated hubris, or excessive pride in his role. Hubris is relevant insofar as it can be characterised by dangerous over self-confidence and complacency, often in combination with arrogance, contempt towards people who offer criticism and obsession with personal image and status." The report concluded that cultural issues "were not the primary cause of the financial collapse" but aspects "may have facilitated or been associated with a lack of transparency". On Thursday Professor Gillespie faced MSP questions at the education, children and young people committee, wit Opening questioning, convenor Douglas Ross put it to the former principal that his leadership style was flawed, something the professor challenged. Mr Ross said: "Why are you the only person who thought you were a good leaders, when Pamela Gillies makes clear in her report that your leadership was part of the problem here?". Former principal of Dundee Uni Professor Iain Gillespie will not take questions from the media after getting a grilling from MSPs during the Education committee at Holyrood this morning.@HeraldPols @heraldscotland asks if he acted with hubris? No response — Hannah Brown (@HannahMargBrown) June 26, 2025 The Conservative MSP directly accused the principal of lying to staff and students when, on February 28, he said the university was "moving into a surplus after decades of financial deficits" while there was an £8m hole in the budget. Professor Gillespie said: "There was no lie there, there was no mendacity. It may have been incorrect, and I accept that it was incorrect." A big part of Wednesday's evidence centred around the breach of the university's banking covenant, which should have been, but was not, reported to the Scottish Funding Council. The former principal said his knowledge of the situation was "very poor" and only became aware of a 2023 challenge to the covenant when he read it in the Gillies Report. Mr Ross replied: "Sorry? Say that again, because I can't believe what you've just said." Professor Gillespie was given a £150k payout when he resigned from the University of Dundee, and was quizzed repeatedly on whether he would repay that. He indicated that he would not. Willie Rennie said: "You say your apology is heartfelt, I have to say I don't feel it. "You didn't watch yesterday, you're not prepared to pay the £150k back to the university. It doesn't feel like you really feel the pain other people are going through at this time. "Do you understand how angry people are about that?" He then brought up a previous session where Professor Gillespie gave evidence to the committee, in which he said universities in Scotland were "quite well run" and that he did not see "any risk to survival" of universities. The Liberal Democrat MSP concluded: "Were you delusional or incompetent, or was there something else?". Mr Rennie then asked Professor Gillespie if he felt people were afraid to challenge him, leading to a long pause after which the former principal said members of court "certainly" weren't afraid to. Ross Greer asked the former principal if he'd ever withheld information from the university court. He replied: "I certainly wasn't deliberately withholding information from court. I would have conversations with the chair of court on specifics. 'I had a conversation as I began to see the severity, and the chair of courts view was very firmly that she communicates with court members,' he says. 'There was sense that you speak when you're spoken to.' The Green MSP said he found that "hard to believe". The session concluded with some more questions from the convenor, Mr Ross. In his final question he asked Professor Gillespie whether he was incompetent or corrupt. The former principal replied: "I'm certainly not corrupt, so I have to choose incompetent.' Following the session he refused to answer questions from the media.
The Herald Scotland
24-06-2025
- Business
- The Herald Scotland
Unprecedented £40 million bailout for Dundee University
It follows the publication of a damning report into the university's handling of its financial crisis. The Gillies Report, published last week, led to the resignation of three senior staff members, including interim principal Professor Shane O'Neill. It described the circumstances which led to the establishment needing a government bailout as "self-inflicted". Ms Gilruth said the funding has been agreed "in principal" with the Scottish Funding Council, which normally issues cash independently. But "specific conditions" will be placed on the funding, and it will only be released after a long-term recovery plan is put in place by the university. Dundee University already received a £22 million bailout in February, meaning the Scottish Government has now provided £62 million for the institution this year. Read more: That bailout was part of a £25 million package made available to the SFC to help universities facing significant financial challenges. "This is a unique and unprecedented set of circumstances which require a unique and unprecedented response,' Ms Gilruth said in a statement in Holyrood on Tuesday. Dundee University is currently struggling to deal with a £35 million financial black hole, with the institution warning hundreds of job losses could be needed. The scathing report into the institution's finances also criticised Professor Ian Gillespie, who resigned as principal in December. It described him as having an "overbearing leadership style". 🎟️ Book now for The Herald's Unspun Live at the Edinburgh Fringe – featuring John Swinney, Anas Sarwar, Kate Forbes and more As well as the resignation of the interim principal, the acting chair of court, Tricia Baym and chair of finance and policy Carla Rossini brought forward their own departures to quit with immediate effect. Ms Gilruth added: "Where there has been the appearance of financial mismanagement at an institution, Scottish ministers are obliged to consider whether it is necessary or expedient to issue a direction to the SFC about the provision of financial support. 'Subject to the public value tests I have set out today, Scottish ministers consider it is both necessary and expedient for a direction to be issued to the SFC under Section 25 of the Further and Higher Education Scotland Act 2005. 'The use of this power is unprecedented and has been made necessary by the exceptional circumstances at the university.' But she told MSPs the £40 million was not about "rewarding failure". Read more: Miles Briggs, education spokesman for the Scottish Tories, said: 'While the priority must be ensuring Dundee University gets on the road to recovery, it is hard to accept that we should just draw a line under the financial vandalism that went on for far too long. 'Those responsible for that gross mismanagement have rightly fallen on their sword but we must now see SNP ministers robustly scrutinise how the university will bring their finances into a sustainable position going forward. 'Staff and students remain deeply concerned about the precarious position the university finds itself in and will be worried that there appears to be no sign of a Plan B currently. 'There was clearly something rotten with the culture that was allowed to fester within Dundee University and that came from the very top. 'Too many of Scotland's universities are in an unsustainable position currently, yet we are still to see SNP ministers or university bosses address this crisis with the leadership that is required.'
STV News
24-06-2025
- Business
- STV News
Scottish Government announces 'unprecedented' bailout for Dundee University
The Scottish Government announced an 'unprecedented' bailout for Dundee University on Tuesday afternoon. The Scottish Government will give the university up to £40m over the next three financial years to help stabilise its finances. Education secretary Jenny Gilruth said how the money is spent will be closely monitored. 'The use of this power is unprecedented and has been made necessary by the exceptional circumstances at the university' Education secretary Jenny Gilruth The bailout is in addition to the £22m that the Scottish Government previously provided in March to keep the university going when the financial crisis was first revealed. The decision comes just days after a scathing review of the university's financial crisis was published. The investigation was commissioned by the Scottish Funding Council (SFC) after the university announced that hundreds of jobs could be lost due to a £35m blackhole. Led by Professor Pamela Gillies, the review found serious concerns over governance and transparency at the highest levels of the university. It found senior leaders at Dundee University breached ethics rules, ignored financial red flags, and operated in 'isolation of facts'. 'This is a unique and unprecedented set of circumstances, which requires a unique and unprecedented response,' Gilruth said on Tuesday. Gilruth said the legal process does allow ministers to 'target a direct settlement to the University of Dundee', and to place 'specific conditions' on that funding in this 'unprecedented set of circumstances'. 'Where there has been the appearance of financial mismanagement at an institution, Scottish ministers are obliged to consider whether it is necessary or expedient to issue a direction to the SFC about the provision of financial support,' Gilruth said. 'The use of this power is unprecedented and has been made necessary by the exceptional circumstances at the university, as set out in the findings of the Gillies Report, which recount 'poor financial judgement' and 'weak governance'.' Gilruth added: 'I can therefore confirm that the Scottish Government will provide funding in principle of up to £40 million over two academic years, or three financial years, via the Scottish Funding Council, to support the University of Dundee. 'This funding is subject to further due diligence prior to any expenditure occurring.' Gilruth said Dundee University will need time to work through the implications of the Gillies review, but she said Ministers will 'support that endeavour' via the SFC. 'A line must now be drawn under mistakes made by a collective few, and we must jointly, across this Chamber, endeavour to support Dundee University to rebuild, to thrive and once again, to flourish,' Gilruth concluded. 'The SFC will provide an update to the Education Children and Young People Committee on its associated next steps. Ministers will provide a further update to Parliament early in the new term.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
STV News
19-06-2025
- Business
- STV News
Hubris, secrecy and a £122m bailout: Dundee scandal is a wake-up call for all universities
This is beyond damning. The principal and other senior managers at the University of Dundee knew their student numbers were falling and knew they were millions of pounds in deficit. But the fact that they not only failed to do anything about it but covered it up and kept spending is incredible. Attracting overseas students has been a big part of the business model for Scotland's universities for quite a few years. It worked at Dundee University – until it didn't. In 2024, the number of overseas students enrolling at Dundee fell from more than 1,200 to fewer than 400. Instead of cutting costs in line with falling income, the principal's message was one of confidence for the future and the prospect of continued growth. For months, financial papers were withheld from the university's ruling court and no one questioned what was going on. Bear in mind this is a higher education institution charged with shaping the inquiring minds of the country's future, and not one of the senior management team questioned what was going on or why they were being kept in the dark. As well as all that, the principal and his closest colleagues kept the university's financial position from the Bank of Scotland. The Gillies Report makes it clear they were guilty of a 'breach of covenant' twice – spending money from university bank accounts while knowing they were already in deficit. That's something else they kept from the University Court. I've not seen a report like this outside of the criminal courts, but it's author Professor Pamela Gillies does not believe their actions amount to criminality. The Office of the Scottish Charity Regulator, (OSCR) however, is launching a further investigation on the back of todays report. All universities in Scotland are registered as charities. So OSCR says 'concerns remain about the governance of this charity' and they are opening an inquiry 'so that we can better understand these matters'. They will look into 'the university and its trustees, past and present, to determine whether regulatory action is required'. So everyone who sat on Dundee University's Court or played a role in senior management over the last few years will come under their investigation, including former Scottish Labour leader Wendy Alexander, who is now a Labour Peer in the House of Lords. This is a wake up call to universities across Scotland. Just this month MSPs on Holyrood's education committee heard from University of Edinburgh principal Sir Peter Mathieson, Edinburgh Napier University principal professor Sue Rigby, and University of the West of Scotland principal, Professor James Miller about the financial difficulties they are facing. You might remember the exchange between former Scottish Conservative Leader Douglas Ross and Sir Peter Mathieson, who couldn't remember quite how many hundreds of thousands of pounds he was paid. Towards the end of the Gillies Report, it describes the then-Dundee University principal professor Ian Gillespie as 'an excellent public speaker' but warned there were 'many reports to this investigation that the principal frequently demonstrated hubris, or excessive pride in his role'. It added: 'Hubris is relevant insofar as it can be characterised by dangerous over self-confidence and complacency, often in combination with arrogance, contempt towards people who offer criticism and obsession with personal image and status.' That hubris almost saw the University of Dundee go bust and forced the taxpayer to cough up £122m to keep it going. This must be a wake up call not just to universities but to all those who sit on management boards of important institutions and public sector bodies. They must scrutinise and hold themselves to account because further down the line others will hold them to account. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
