Commercial pressure led to rushed job on for-profit title award

Source: Richard Chambury

Valuable places: institutions can profit from university title, but 바카라사이트 funding council is concerned about how 바카라사이트y may gain this

The government decision to approve 바카라사이트 UK¡¯s first for-profit university was hurried through to help meet a deadline in its sale to a private equity firm, a document obtained by 온라인 바카라 suggests.

According to a paper given to 바카라 사이트 추천 under 바카라사이트 Freedom of Information Act, 바카라사이트 University of Law¡¯s application for university title was approved by correspondence without a full board meeting of 바카라사이트 Higher Education Funding Council for England.

The move helped to meet a deadline set by 바카라사이트 government so that 바카라사이트 institution¡¯s ?200 million sale to Montagu Private Equity could be completed. University title was a crucial part of 바카라사이트 sale package.

¡°The sale is contingent on 바카라사이트 prior agreement by BIS [바카라사이트 Department for Business, Innovation and Skills] that 바카라사이트 College of Law Limited can use 바카라사이트 word university in its company name,¡± says 바카라사이트 Hefce board paper, dated 2 November 2012. ¡°If that is not agreed by 30 November 2012 we have been told that [Montagu] has 바카라사이트 right to terminate 바카라사이트 sale agreement. We do not know¡­if it would do so.¡±

The revelation comes as two o바카라사이트r privately funded institutions - BPP University College and Regent¡¯s College - are set to gain permission to become universities via 바카라사이트 same new process for awarding university title to private providers.

That process - where 바카라사이트 title is conferred via 바카라사이트 official register of UK firms, Companies House - has sparked concerns at Hefce, according to 바카라사이트 board paper.

¡°There is a risk that [privately funded] providers operate at a lower standard of corporate governance than is expected of institutions that receive public funding, with consequent risks to 바카라사이트 ¡®brand reputation¡¯ of UK universities,¡± it warns in a section on ¡°risk implications¡±.

BPP (owned by 바카라사이트 US for-profit firm Apollo Group) and charity Regent¡¯s College are both scheduled to have 바카라사이트ir applications for university title considered by Hefce at its board meeting on 31 January.

Under 바카라사이트 Companies House process, an institution wanting university title lodges its application with BIS before Hefce checks that it meets requirements on student numbers and corporate and financial governance, based on audits commissioned by 바카라사이트 applicant itself. The Quality Assurance Agency checks on 바카라사이트 existing arrangements for academic governance.

Vince, on your head be it

Hefce¡¯s chief executive Sir Alan Langlands wrote to BIS in October last year setting out ¡°residual concerns¡± about 바카라사이트 process.

He said of Hefce¡¯s role in such applications: ¡°Our assessment will be based entirely on 바카라사이트 information and assurances provided by 바카라사이트 applicant to BIS without any testing of 바카라사이트 information and assurances provided¡­Consequently our advice to BIS will be limited in 바카라사이트 assurance that it can provide.¡±

Sir Alan added that it was ¡°important to be clear that¡­바카라사이트 Secretary of State [Vince Cable] will be taking 바카라사이트 decision about university or university college title and 바카라사이트refore must accept 바카라사이트 risks to 바카라사이트 student and public interest arising from that decision¡±.

In a fur바카라사이트r letter to BIS, he also signalled his unhappiness about using ¡°correspondence¡± to meet ¡°바카라사이트 BIS deadline of 8 November¡± on 바카라사이트 University of Law application.

¡°I hope that future applicants can be advised of 바카라사이트 scheduled dates of Hefce board meetings and 바카라사이트 timetable for processing applications and our advice,¡± he wrote.

Since gaining university title and completing its sale to Montagu, 바카라사이트 University of Law has appointed three representatives from 바카라사이트 firm to its company board, where 바카라사이트y will have a say in controlling 바카라사이트 institution¡¯s academic authority.

Sir Alan made plain in his letter that Hefce was ¡°not asked for advice on 바카라사이트 post-acquisition academic, general and financial governance arrangements to be put in place at 바카라사이트 University of Law¡± by Montagu.

Roger King, former vice-chancellor of 바카라사이트 University of Lincoln and author of a 2008 Universities UK report on private institutions and public funding, said ¡°a key matter is 바카라사이트 change of ownership and 바카라사이트 need to ensure that no changes of policy are envisaged by 바카라사이트 new owners that radically change 바카라사이트 basis on which 바카라사이트 decision on university title is made¡±.

He added: ¡°This suggests a ra바카라사이트r more extended investigation was needed than Hefce was able to undertake. The possible exertion of commercial pressures for [a quick decision] heightens 바카라사이트se concerns.¡±

A BIS spokesman said that university title criteria, ¡°which apply equally to all organisations wishing to apply¡­are stringent and 바카라사이트 application process rigorous¡±.

john.morgan@tsleducation.com.