Department says position on withheld €1.7m UL funding 'under consideration'

The Higher Education Authority plans to meet with the university shortly and will “seek continued assurance” from the governing authority. 

It previously emerged that the university proceeded with the purchase of the former Dunnes Stores site despite concerns raised by members of its own governing authority. Picture: Brendan Gleeson

The Department of Further and Higher Education has said its position remains "under consideration" in relation to the almost €1.7m in capital funding it withheld from the University of Limerick due to governance concerns.

As previously reported, the payment, which makes up the majority of the university’s devolved capital funding for the current academic year, was paused last year by the department’s chief Jim Breslin.

The move came on foot of continued scrutiny on the university’s spending, including allegations it paid €8m, more than double the market value two years prior, in acquiring an old Dunnes Stores site in Limerick City centre.

A spokesperson for the Department of Further and Higher Education said the release of the capital funding required “certain assurances” from UL in relation to its capital management procedures.

The UL Governing Authority agreed to undertake a process to provide the Higher Education Authority (HEA) with assurances it was satisfied that governance improvements are “functioning as intended".

Towards the end of 2021, the UL authority provided the HEA with assurances that the governance arrangements are “robust and operating satisfactorily".

The HEA plans to meet with the university shortly and will “seek continued assurance” from the governing authority. 

The position with regard to the balance of the devolved capital grant remains under consideration by the department,” the spokesperson added. 

Secretary-general of the Department of Further and Higher Education Jim Breslin previously told the Public Accounts Committee that he had decided to "pause" the majority of UL’s payment “pending the provision of assurances by UL to the HEA on its capital governance processes”.

A spokesman for UL said it had engaged with the HEA, and provided assurances that were sought "to the satisfaction of the HEA". 

"The HEA is liaising with the department regarding the release of the remainder of the capital grant to UL," he said, adding the university is committed to "strong governance and a continued review and enhancement of its policies, procedures, and practices". 

Chancellor of UL Mary Harney and Professor Kerstin Mey have been asked to appear before the Public Accounts Committee in May. 

At its last appearance at the committee, it emerged that the university proceeded with the purchase of the former Dunnes Stores site despite concerns raised by members of its own governing authority. 

Dunnes Stores, Sarsfield Street, Limerick City brought by the University of Limerick. Picture: Brendan Gleeson

The university also could not provide evidence it undertook an independent evaluation of the site prior to its acquisition. 

A review of the purchase carried out by KPMG "remains under consideration". 

Last week, UL announced it is formally seeking to designate the Clare side of its campus as an economic Strategic Development Zone (SDZ). The university, together with Clare County Council, has formally applied for the SDZ through a new designated activity company, the UL and Clare Economic Development Agency.