THE UNION that represents 900 staff at the University of Limerick (UL) have said that they no longer have confidence in university President Professor Kerstin Mey.
And, UL is to appear again before the Public Accounts Committee (PAC) on April 11th, to face questions about its admittance this week that it had lost €5.2million after paying inflated prices for 20 houses last year.
UL President Kerstin Mey said independent valuations had confirmed that UL paid “significantly above market price” for the properties in Rhebogue. The final bill for the 20 homes, intended as student accommodation, was €12.85million.
The total purchase would mean the university paid close to €630,000 per property, almost double the market value for homes in the area.
Brian Stanley, chair of the PAC, said it has been examining financial issues at UL over recent years and the University’s representatives are to appear before the committee next month.
Mr Stanley, a Sinn Féin TD, said questions remain over what professional evaluations were carried out on the Rhebogue properties, and he said that a simple online check of properties in the same area would have provided UL with a guide price.
Meanwhile, UL Unite have called for a forensic investigation into what they say is a “shameful waste of scarce resources,” while the UL Postgraduate Students Union also held a meeting which called for Prof Mey’s resignation.
UL has also gotten into a spat with Limerick City and County Council planners which claims that the university is using the development as student accommodation without the correct planning permission.
In a letter seen by the Limerick Post, circulated to UL staff on Friday (March 22) by UL President Professor Kerstin Mey, said “An issue has arisen in respect of the properties which were purchased on the University’s behalf in Rhebogue on the outskirts of the campus”.
“New independent valuations have been received which confirm that the University paid significantly above market price for the Rhebogue properties,” the letter stated.
In follow up a letter sent to the UL chancellor, the members of UL Unite said that the letter sent by Prof Mey last week “outraged” their membership and says the letter was “vague” and didn’t outline who was ultimately responsible for the Rhebogue purchase.
The purchase has left the University of Limerick with a loss of €5.2million in their accounts.
“The University will have to absorb the resulting draft impairment, a sum in the region of €5.2m, in our financial accounts. This, coupled with the impairment arising from the purchase of the City Centre Campus, (Dunnes) of which I have already advised you, will result in our financial year end position ending in deficit – when a surplus had previously been anticipated,” Professor Mey said.
“This outcome will be funded from the University’s financial reserves,” she said.
In response, UL Unite said: “The Rhebogue write down combined with the write down on the Dunnes Stores building is more than 8 million Euros. This is a shameful waste of scarce resources which might have been used to better our university and the student experience.”
Professor Mey said that the 20 properties in Rhebogue are currently generating rental income, which is being used to pay back the outlay, and that it was housing 80 postgraduate students.
“It is a matter of regret for me as President,” Prof Mey wrote.
“This is an issue of major concern for the University in terms of management, governance and reputation. I am engaging with our stakeholders to chart the best way forward and there will be action taken as a result of the review that has been commissioned into the transaction,” the letter concludes.
With additional reporting from David Raleigh.
