Dundee University’s recovery from its near financial collapse is set for further scrutiny by Holyrood’s education committee, after a remarkable three days of evidence in parliament.
The committee heard a series of extraordinary revelations as they probed the causes of a financial crisis that left the university on the verge of bankruptcy.
This included two days last week with former university leaders – including ex-principal Professor Iain Gillespie, who told MSPs he was incompetent rather than corrupt.
Convener Douglas Ross says the committee’s interest will now continue when MSPs returns from their summer break.
‘Time for Dundee University to look forward’
As well as scrutiny of the multi-million pound recovery, MSPs on the committee told The Courier they want to examine the use of government powers – known as Section 25 – to intervene directly as a result of suspected financial mismanagement.
Mr Ross said the recent independent Gillies report on decision making at the university shone a light on what went wrong at the very top.
“Hopefully our committee sessions added to this scrutiny, but now it is time to look forward and deliver for the university into the future,” he said.
“When parliament returns from recess the committee will look at the options for us to scrutinise and monitor the recovery plan and the unique use of Section 25 powers, amongst other things.”
What happens next?
The Scottish Government has agreed to provide a £40 million bailout but ministers will use “unprecedented” powers to control how the cash is spent.
The university is likely to set out exactly how the money will be used and how it can build towards a sustainable future in the coming weeks.
Education Secretary Jenny Gilruth confirmed the move last week as she announced the extra cash.
It means the SNP administration will be able to hand the cash directly to the university and place controls on how it is spent to ensure public money is protected.
The extra support brings the total financial support confirmed so far to £62 million.
But the final cost to the tax payer could be even higher if the university fails to secure access to a lending facility for additional support of between £35 and £60 million.
Ms Gilruth says no decision has been taken on this with further examination of the figures required.
She added: “The SFC has been advised by Dundee University that whilst this is not an immediate cash need, it will need to be addressed before the end of this financial year.”
“It is, therefore, vitally important that the university works to secure a plan which will allow for commercial lending to support some, or all of the liquidity ask.”
Conversation