Dundee University bosses breached ethics rules, ignored financial red flags and operated in “isolation of facts”, an explosive independent report has found.
The highly critical review, led by Professor Pamela Gillies, found the university’s most senior leaders repeatedly failed in their duties as the institution hurtled towards a cash crisis that left it on the brink of collapse.
The former principal, Professor Iain Gillespie, is condemned for presenting an unrealistically positive picture of the university’s financial health.
His then deputy and current interim successor, Professor Shane O’Neill, is also panned.
And in a finding likely to make O’Neill’s position untenable, the report says the leadership team – a triumvirate of Mr Gillespie, Mr O’Neill and former chief operating officer Jim McGeorge – collectively breached ethical standards by failing to disclose the true state of the university’s finances.
Professor Gillies catalogues of a litany of critical errors.
Bombshell revelations in the 63 page document include the following:
- Members of the university executive group (UEG) breached ethical standards
- Bosses could have acted in January 2024 but continued to ramp up spending
- The university breached its agreements with lenders and failed to notify its auditors or the funding council
- Governance of the institution failed in June 2024 as members of the governing body failed to hold the leadership accountable
- Female members of staff who challenged university bosses were sidelined and branded “obstructive”
Prof Gillies says the main factors behind the crisis are specific to the university.
She writes: “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.”
University chief’s strongly criticised
Prof O’Neill previously insisted his role as deputy to Mr Gillespie did not give him primary responsibility for the financial failures.
But the Gillies probe suggests this is inaccurate. The three men are accused of controlling the narrative, failing to notify both the university court and the Scottish Funding Council about breaches of loan agreements with the Bank of Scotland and losing access to a vital multi-million-pound credit facility.
“UEG’s members included the Principal, [chief operating officer], [deputy vice chancellor] and [director of finance], each of whom was aware in part or in totality of the worsening situation,” the report says.
The report says they operated in “isolation of facts”, pushing a positive narrative while ignoring mounting evidence of crisis.
Mr Gillespie and Mr McGeorge have now left the institution. The former principal’s Linkedin profile suggests he remains a visiting professor at the University of Edinburgh.
McGeorge has not taken up a new role since leaving in May. Both are set to appear before Holyrood’s education committee next week.
Senior staff ignored ‘warning shot’
Ms Gillies’ investigation into the financial situation finds that in January 2024 there was a “warning shot” when post-graduate recruitment dropped sharply. She says this should have signalled an immediate change in budgets.
“Instead, the narrative within the university for investment and growth continued,” the report says.
Crucial financial information which would have revealed the coming storm was also withheld.
No management accounts, which detail the cash position and financial health, were provided to the university court at a critical period between May and June 2024.
But the court members, which includes Dundee City Council chief executive Greg Colgan, failed to ask relevant questions.
“The absence of management accounts should have been of considerable concern, and a reasonable person should not have accepted this status.”
The report says it was “reasonable” to conclude the financial position was worse than presented and the failure to provide information is an indicated of either a “fundamental breakdown in financial management” or a sign something is not being disclosed.
It adds that the court “failed in its governance responsibilities in June 2024”.
Governance failures continue
It appears this trend of withholding information and failure of governance has continued.
A court member told The Courier on Thursday that a letter from the university’s auditor addressed to members continues to be withheld alongside an investigation into mismanagement.
The only member of the university executive praised is Lady Wendy Alexander, the former “vice principal international”.
Ms Gillies says Lady Wendy challenged Mr Gillespie. The Courier understands she was effectively “managed out” as a result and offered a pay off. She instead chose to retire.
She says: “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.”
It also says female staff in particular reported being spoken over and sidelined.
Dr Ian Mair, deputy chair of court, welcomed the “robust” and said he was grateful to those who had taken part.
He said: “It is evident from the report that there have been clear failings in financial monitoring, management and governance.
“There is much in this report on which we have to reflect. We will take a short time to digest the full implications of the report but we will act on the findings.”
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