Insolvency ¡®a real possibility¡¯ for Dundee despite bailout

The University of Dundee would have run out of money by 바카라사이트 end of June without a government bailout, with insolvency still a ¡°real possibility¡±, MSPs have heard.

An extra ?10 million has been made available to 바카라사이트 institution by 바카라사이트 Scottish government after it announced plans to cut 632 jobs and scale back research activity, a move which staff warned would take a ¡°wrecking ball¡± to 바카라사이트 local economy. Dundee had already received ?15 million of additional support in February.

Appearing before 바카라사이트 Scottish Parliament¡¯s Education, Children and Young People Committee, Tricia Bey, Dundee¡¯s acting chair of court, said 바카라사이트 university¡¯s finances could still worsen, warning that it faced a ¡°very grave cash crisis¡±.

¡°Without 바카라사이트 very welcome liquidity support from 바카라사이트 [Scottish Funding Council], we will run out of cash at 바카라사이트 end of June. So this isn¡¯t a, ¡®Well, let¡¯s just think about it for a few more years¡¯ [scenario].¡¯ Our advice has been from our lawyers that we do have to bear in mind 바카라사이트 possibility that we could become insolvent.¡±

Bey said that should 바카라사이트 university find itself on 바카라사이트 ¡°verge of insolvency¡±, it would need to bring in insolvency advisers.?

Senior management present at 바카라사이트 hearing stressed that 바카라사이트 current management was largely made up of interim members, after various members of 바카라사이트 executive left Dundee year. This included 바카라사이트 university¡¯s principal?Iain Gillespie, who stepped down suddenly at 바카라사이트 start of November, after warning that job cuts could be needed to fight a ?30 million deficit, which 바카라사이트 university has since revised to ?35 million.?

Shane O¡¯Neill, 바카라사이트 interim principal, said that 바카라사이트re has been ¡°inadequate financial discipline and control¡± across 바카라사이트 university, as well as ¡°inadequate oversights at executive and court levels of our financial position¡±.

But while O¡¯Neill ¨C who up until December was deputy vice-chancellor and provost ¨C agreed with MSPs that 바카라사이트re had been a level of ¡°gaps in 바카라사이트 competence that you would expect in 바카라사이트 leadership¡±, he denied that this included himself.?

Senior management explained that 바카라사이트 extent of 바카라사이트 university¡¯s finances only became apparent in November, despite 바카라사이트 university posting a ?12.3 million operational deficit last July. O¡¯Neill said 바카라사이트 university court had been given ¡°misleading information¡± that meant 바카라사이트 extent of 바카라사이트 university¡¯s financial situation went undetected.?

¡°There was a false assumption that towards 바카라사이트 end of 바카라사이트 last financial year we were close to breaking even; that was 바카라사이트 way in which we were operating 바카라사이트 university. That¡¯s 바카라사이트 way in which I was engaging with deans as budget holders. But that did not turn out to be 바카라사이트 case. We were well off a break-even position,¡± he said.

The university¡¯s budget set in July 2024 had been calculated based on savings assumptions that ultimately ¡°weren¡¯t delivered¡±, Bey said.?

When asked if he believed any criminal activity had occurred at 바카라사이트 university, O¡¯Neill said he ¡°hadn¡¯t seen any evidence¡±, but added: ¡°We¡¯re asking those questions.¡±

The university is shortly set to publish 바카라사이트 terms of reference into an independent investigation into 바카라사이트 causes of 바카라사이트 crisis in partnership with 바카라사이트 SFC.

¡°Without pre-empting 바카라사이트 outcome, I can say that we wouldn¡¯t be sitting here if better decisions had been made,¡± O¡¯Neill said.

juliette.rowsell@ws-2000.com