UL asks PAC to defer hearing into 'significant' overspends as president cannot attend

Professor Mey has admitted UL paid 'significantly above market price' for properties in Rhebogue and that it was a “matter for regret” for her as president. Picture: Liam Burke/Press 22

The University of Limerick (UL) has asked an Oireachtas committee to defer a hearing into “significant” overspends on student accommodation because its embattled president is unable to attend.

Professor Kerstin Mey's unavailability comes as the Higher Education Authority (HEA) has demanded UL provide a report on a number of issues, including governance.

The report, which has to be completed in 60 days, could lead to UL having its funding cut or controlled, or it could be forced to refund public monies.

Members of the Public Accounts Committee (PAC) want Professor Mey to explain why the college overpaid €5m for student accommodation on the outskirts of its Castletroy campus.

The 20-house scheme in Rhebogue was originally valued at just over €11.4m, but a review later found this to have been inflated, and that it was only worth around €6.2m.

Professor Mey has admitted UL paid “significantly above market price” for the properties, and that it was a “matter for regret” for her as president.

She said it was also a “major concern for the University in terms of management, governance and reputation”.

Members also want to discuss the purchase for €8.3m in 2019 of the old Limerick city Dunnes Stores premises on Sarsfield Street despite being valued at €3m just two years previously and just €5.4m today.

In a letter to the PAC, UL’s Chancellor Professor Brigid Laffan has told the committee Professor Mey will not be able to appear before it on April 11.

She said that while the president is currently unable to attend, she has “indicated her intention to fulfil the engagement before the Committee at a later date”.

However, if that does not happen, Professor Laffan assured the committee that another person will be delegated to appear instead.

She also asked the committee to consider alternative dates for either herself or other senior UL staff to attend, suggesting that anytime after May 6 would be ideal.

She told them: “I assure you of the University’s intention to be utterly candid with the members of the Committee. I am very conscious of the concerns of the Committee about the recent acquisition in Rhebogue as are the University’s stakeholders. The Higher Education Authority is also concerned.”

In the March 26 letter, seen by the Irish Examiner, HEA CEO Dr Alan Wall wrote to express his “deepest concerns in relation to the governance and culture of the institution”.

Referencing both the Dunnes Stores and the Rhebogue deals, he said he was also concerned about “the potential impact on the reputation and financial stability of the University”.

He added: “These urgent matters are of significant concern and are indicators of continued governance and compliance challenges for UL.”

Among the issues listed by Dr Wall in his letter included a number of points relating to concerns over alleged lack of governance at UL, lack of compliance with public spending procedures and obligations, and lack of value for money in relation to spending.