Latest news with #DundeeUniversity
Times
11 hours ago
- Business
- Times
Dundee University had ‘overbearing leadership and lax financial controls'
An 'overbearing' principal, poor financial controls and a lack of transparency contributed to Dundee University's financial meltdown, a scathing report has concluded. The results of the independent investigation carried out by Professor Pamela Gillies were published on Thursday by the Scottish Funding Council (SFC) and suggest that much of the harm which resulted in a £35 million deficit was self-inflicted. Gillies was tasked with looking into the problems, which threatened to lead to hundreds of jobs losses. The Scottish government has already provided a £22 million bailout to ensure the immediate future of the institution. Gillies, who is a former principal of Glasgow Caledonian University, found that the University of Dundee had failed to adequately address issues around declining numbers of overseas students and did not take cost-saving action early enough, meaning it was 'set up to fail' in its 2024-25 financial year. Professor Shane O'Neill, who took over as interim principal in December, resigned immediately after the report was published. Tricia Bey, the acting chairwoman of the university court, and Carla Rossini, convener of the finance and policy committee, also departed with immediate effect. Jenny Gilruth, the education secretary, said: 'It is evident from the findings that there are serious questions which must be answered by the University of Dundee's management team. '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.' O'Neill, previously the deputy vice-chancellor, and Professor Iain Gillespie, the former principal who left last December, along with other senior finance managers were described as not having 'a culture of openness' at all levels. Gillespie's 'overbearing leadership style' was also highlighted as well as his dislike of 'awkward' questioning, while 'dissent or challenge was routinely shut down'. Submissions made to the inquiry stated that Gillespie 'frequently demonstrated hubris, or excessive pride' in his role. Financial controls were lacking in many areas with the university actually breaching its banking covenants, although that information was not properly conveyed to oversight committees. Many investment decisions 'were not appropriately agreed against their effects on the University's sustainability'. The report also called into question the 'credibility and accuracy' of the documents which were put forward for scrutiny by the university court. It said: 'Information was generally presented in a manner which made it difficult to fully understand the true financial performance of the university.' The 64-page document notes that poor oversight meant 'operational and investment decisions were made without awareness of the university's cash position'. It also raised questions over how more than £40 million of cash was spent, having been raised from selling shares in the successful university spin-out company Exscientia, which uses artificial intelligence to aid drug discovery and development. It was supposed to have been ringfenced for 'strategic development' but instead appears to have been used in the university's day-to-day cash spending Alongside the poor financial governance, the cash problems were worsened by decisions to continue adding new members of staff instead of implementing a recruitment freeze. The total headcount peaked at more than 4,340 but had fallen slightly to about 4,100 by April this year. Francesca Osowska, chief executive of the SFC, said: 'Given the seriousness of the situation, it was important that the investigation was conducted with rigour and transparency. 'The report has identified a range of issues that contributed to the financial challenges facing the university; however, it is quite clear that there have been failures in financial monitoring and reporting, and failures in governance.' Michael Marra, a Labour MSP who used to work at the university, said: 'The report shows that the institution was failed catastrophically by a small group of executive leaders entirely out of their depth and cowed by a hubristic principal who brooked no dissent. 'Details of Iain Gillespie's leadership style are deeply troubling; sidelining, speaking over or publicly criticising women in the university who dared to speak up. 'There were also clear failures of governance, with inaccurate reports which masked the true financial picture, and public statements by the principal that were purposefully misleading.' Miles Briggs, the Scottish Conservative MSP, said: 'This is a devastating report into the gross mismanagement that has existed for far too long at the University of Dundee. 'Senior figures were told what they had to do to get Dundee University into a sustainable position but they repeatedly failed to act, and covered-up the true state of its financial position.'
The Independent
a day ago
- Business
- The Independent
Dundee University report must be ‘watershed moment', Tories say
A damning report into the financial crisis at Dundee University must be a 'watershed moment', the Scottish Tories have said. Professor Pamela Gillies released the findings of her investigation into the causes of the £35 million black hole at the institution on Thursday, criticising senior leaders. Within minutes of the report, interim principal Professor Shane O'Neill – who was part of a 'triumvirate' including the former principal and the former chief operating officer which was heavily criticised – announced he and two other senior officials would be standing down. The report accused former principal Professor Iain Gillespie of 'hubris' and refusing to take criticism, as well as hitting out at internal monitoring of the university's finances. Responding to the publication of the report, Scottish Tory education spokesman Miles Briggs said: 'This is a devastating report into the gross mismanagement that has existed for far too long at the University of Dundee. 'In light of the damning findings it is welcome they have done the right thing and resigned from their roles instantly. 'Senior figures were told what they had to do to get Dundee University into a sustainable position but they repeatedly failed to act, and covered up the true state of its financial position.' He added: 'The report is scathing about the inexcusable failures by those in leadership roles. 'It is now essential that this is a watershed moment to ensure no Scottish university will ever face such a situation in future.' Local Labour MSP Michael Marra accused former leaders of 'financial vandalism'. 'The report shows that the institution was failed catastrophically by a small group of executive leaders entirely out of their depth and cowed by a hubristic principal who brooked no dissent,' he said. 'Details of Iain Gillespie's leadership style are deeply troubling – sidelining, speaking over or publicly criticising women in the university who dared to speak up. 'There were also clear failures of governance, with inaccurate reports which masked the true financial picture and public statements by the principal that were purposefully misleading.' Scottish Liberal Democrat MSP Willie Rennie said the crisis had been 'devastating' and urged there to be a new leadership team in place 'without delay'. 'It is not an exaggeration to say that the staff and students have been betrayed,' he said. 'The oppressive behaviour from the top together with inadequate reporting and governance from the court has led to this failure. 'It is right that the whole leadership team has now gone.' In the wake of the crisis, the university announced it would have to make redundancies, with the initial estimate of 700 jobs to be cut eventually dropping to around 300. The University and College Union successfully balloted its members for strike action as a result of the plans. The union's Scotland official Mary Senior said the report laid bare 'abject failings' of management. 'Given the clear failings of management, it should not be staff and students that are left to pay the price in cuts to their jobs and cuts to education,' she said. 'We are clear that the university should now commit to rule out the use of compulsory redundancies.' When the university announced it would be reducing the number of redundancies, bosses said cuts would be made through a voluntary redundancy scheme.
STV News
a day ago
- 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
Scotsman
a day ago
- Business
- Scotsman
University bosses quit after 'devastating' report into financial crisis
An independent report found Dundee University's financial collapse was 'self-inflicted' Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The interim principal and vice-chancellor of Dundee University and two senior members of its governing body have quit in the wake of a 'devastating' report into its financial collapse. Professor Shane O'Neill, who took over in December and was previously deputy vice chancellor, said he was 'truly sorry' for the impact on staff and students as he announced his departure with a 'heavy heart'. Advertisement Hide Ad Advertisement Hide Ad It comes after an independent report found the failure of the university's financial governance system was 'self-inflicted and experienced multiple times and at multiple levels'. Dundee University | National World It said failures were compounded by a 'top-down, hierarchical and reportedly over-confident style of leadership and management, a lack of transparency and clarity in respect of financial data, the promulgation of a positive narrative around financial matters and a culture in which challenge was actively discouraged'. Tricia Bey, acting chairwoman of the university court, and Carla Rossini, convenor of the finance and policy committee, who were both due to step down from court this summer, are now bringing this forward and leaving with immediate effect. The investigation into the university's finances was ordered after it announced there could be hundreds of job losses as it struggles to deal with a £35 million deficit. It was was commissioned by the Scottish Funding Council, led by Prof Pamela Gillies and conducted by international professional services firm, BDO. Advertisement Hide Ad Advertisement Hide Ad In her foreword, Prof Gillies wrote: 'The main causal factors of the financial failure uncovered by this investigation are largely specific to the University of Dundee. 'They include poor financial judgement, inadequate management and reporting, poor monitoring of the financial sustainability key performance indicator, lack of agility in responding to a fall in income by the University leadership and weak governance in relation to financial accountability by the Court. Financial oversight was lacking when most needed. 'These failings were compounded by the top-down, hierarchical and reportedly over-confident style of leadership and management, a lack of transparency and clarity in respect of financial data, the promulgation of a positive narrative around financial matters and a culture in which challenge was actively discouraged.' Dundee-based Scottish Labour MSP Michael Marra said: 'This devastating report lays bare the financial vandalism and appalling leadership that has tipped the city's most important institution into an existential crisis. Advertisement Hide Ad Advertisement Hide Ad 'I am grateful to Professor Gillies for her work in uncovering the details of this scandal. She has been clear that this is an outstanding institution with committed, excellent staff doing world-leading work. 'The report shows that the institution was failed catastrophically by a small group of executive leaders entirely out of their depth and cowed by a hubristic Principal who brooked no dissent. 'Details of Iain Gillespie's leadership style are deeply troubling - sidelining, speaking over or publicly criticising women in the university who dared to speak up. 'There were also clear failures of governance, with inaccurate reports which masked the true financial picture and public statements by the principal that were purposefully misleading. Advertisement Hide Ad Advertisement Hide Ad 'The so-called 'triumvirate' of the Principal, his Deputy and now Interim Principal and the Chief Operating Officer opened this proud university to the greatest risks of a broken funding system in Scotland. 'It is right that the Interim Principal has recognised his position is untenable - but the lessons of this go beyond a single institution. 'The Scottish Government must reckon with the fact that it has made all Scottish universities vulnerable to this kind of crisis, if they and the communities they serve have the misfortune of being led by a management so clearly out of its depth.' Scottish Conservative education spokesman Miles Briggs said: 'This is a devastating report into the gross mismanagement that has existed for far too long at the University of Dundee. Advertisement Hide Ad Advertisement Hide Ad 'In light of the damning findings it is welcome they have done the right thing and resigned from their roles instantly.
BBC News
a day ago
- Business
- BBC News
Dundee University: Damning report says financial crisis 'self-inflicted'
A damning report into Dundee University has said the financial collapse that led to a government bailout was caused by a "self-inflicted" failure of its oversight independent report said university bosses and its governing body failed multiple times to identify the worsening crisis and continued to overspend instead of said the problems should have been clear to senior members of the university that its financial position "was worse than presented".Prof Iain Gillespie, who resigned as the university's principal in December, was said to have had an "overbearing leadership style" and a dislike of potentially awkward confrontations or questioning. The report said he frequently demonstrated hubris - or excessive pride - in his role, which it said can lead to a contempt towards people who offer criticism and obsession with personal image and status. Prof Gillespie stood down weeks after he had told staff that job losses were "inevitable" in order to tackle a "significant deficit".He blamed "an extremely challenging period" for the UK higher education later emerged that the university had a £35m blackhole in its funding and it had to be bailed out with £22m from the Scottish Scottish Funding Council then commissioned an investigation into why the university's financial position deteriorated so independent report, led by Prof Pamela Gillies, found the main causes included poor financial judgement from university bosses and weak governance from the university court, which is meant to hold senior management to report found that almost £40m of ringfenced money had been spent elsewhere and there had been "a lack of real action" to address an £8m "hole" due to a fall in international student said those in charge of the university's governance should have known well before November last year that there was a were numerous points where "a reasonable person" could have reached a judgement that the university's financial position was worse than presented, it then detailed the occasions when those overseeing the finances failed to challenge executives on the gap between rapidly falling income and continued high report stated: "The failure of the university's financial governance system was self-inflicted and experienced multiple times and at multiple levels."This led to a failure in identifying the worsening situation and not responding early enough." Fall in overseas students According to the report the university had a £33.7m increase in revenue in the year to July 2023, mainly driven by growth in international students and an increase in research year-on-year recruitment of overseas postgraduate students then fell from 1,230 to report said that the university needed to make £8m of savings in 2024 due to this fall in overseas recruitment, but that nothing had been done to address the "inevitable outcome".It said this "set the university up for failure" in the 2025 financial report added that this should have signalled "an immediate change" in the 2024 budgets and added: "Despite this decline in student numbers and resultant impact on revenues, the university did not make significant cost reductions, notably around staff costs which account for about 60% of total costs."Instead, a message from Prof Gillespie was circulated to staff and students on 1 March 2024, which said that the university had improved its resilience, allowing it to "invest in our strength and continuing on a path of growth".The report noted: "This set the tone within the university for investment and growth at a time when savings should have been rapidly implemented."It added: "This was at a time when the Principal was aware that there was an £8m "hole" in the (2024 financial year) budget. "There were no plans in place to deliver savings necessary to move into a surplus position." 'Significant concerns from staff' The report said that despite a fall in student numbers, there was an internal failure to control costs, stating: "There is little evidence that budgets were meaningfully updated to reflect changing circumstances."The report said that Prof Gillespie resisted "difficult conversations" and that "few dared to speak truth to power", with women in particular finding it difficult to be noted: "Female members of staff in particular, reported being spoken over, side-lined or discussed in public as being obstructive if they attempted to be heard."The report said that it was apparent there were "significant concerns" from staff in relation to income, expenditure and capital spending, but the true picture "was never put together in one place".The university's current principal Shane O'Neill was previously deputy vice chancellor and is identified along with Prof Gillespie, the chief operating officer and the director of finance as one of the bosses who "did not cultivate a culture of openness and challenge at all levels". The report said greater scrutiny, challenge and curiosity should have been forthcoming and "would reasonably have exposed the worsening situation".It noted: "There was no unexpected event or culmination of unexpected events beyond those impacting the sector as a whole. The university was not 'different'."
