The University of Dundee has been in the midst of a leadership revolution. This change follows a disastrous independent report that revealed flagrant financial mismanagement and serious governance failings at the institution. The report, which raised alarms about the university’s financial stability, led to the immediate resignation of several top officials, including Prof Iain Gillespie, who served as principal until December 2022, and Prof Shane O’Neill, who assumed the role of interim principal shortly after Gillespie’s departure.
University staff have testified repeatedly about their deep concerns over revenue, operating costs, and capital outlay. Their testimony points to a growing dissatisfaction with the institution’s financial management. The report revealed that the university had never put together its overall financial picture. This left a complex group of stakeholders in the dark when it came to understanding its fiscal health.
The fiscal picture created by the report is indeed grim. The university must find an additional £8 million in savings by the start of the financial year in April. This funding crisis comes as a result of a massive decline in international student recruitment. In the last year, the number of international students has taken a nosedive. Recruitment of non-EU postgraduate students fell from 1,230 to a mere 393. The massive £35 million funding gap that the university is facing. Further compounding this dire situation are the almost £40 million in ringfenced funds already committed to other schemes.
Dr Ian Mair, deputy chair of the University of Dundee court, reported that the findings indicated “clear failings in financial monitoring, management, and governance.” The school board remains committed to appointing a new principal as soon as possible. In the meantime, these cities are taking bold, interim steps to address this crisis.
Prof Shane O’Neill’s leadership has been under the microscope. According to many, his predecessor’s management style was described as “overbearing.” They hammered him for dodging fights and press inquiries. Tanaiste Custance underscored the university’s governance shortcomings. She highlighted that this type of proactive questioning had not taken place at the highest levels of leadership in over 20 years.
In light of these revelations, Prof O’Neill and two senior governing body members, Tricia Bey and Carla Rossini, resigned immediately following the report’s publication. Their departures punctuate an alarming leadership vacuum as the university continues its efforts to move through this extraordinary crisis.
This financial turmoil has not only affected internal dynamics but has attracted national attention. Poet and local resident Michael Marra described what was happening as “financial vandalism.” He said it was due to “appalling leadership,” which could soon plunge one of the city’s most important institutions into an existential crisis. Most importantly, he said, the report lays bare these catastrophic failures. A majority of leaders were intimidated and stymied by a dictator of a principal who would not put up with any disagreement.
All these difficulties notwithstanding, in the year ending July 2023 the University of Dundee experienced an astounding revenue increase. They claimed a £33.7 million increase, mostly pumped up by a record-breaking rise in international student numbers and rising research income. This bumper crop of good news casts a glaring juxtaposition. At the same time, this general downturn in international recruitment is increasingly jeopardizing future funding.
The university’s administration must respond with urgency and effectiveness to this rare financial landscape. They have been laser-focused on bringing in top leadership to instill confidence with staff and stakeholders. To do that, they need to confront the deeper governance disasters that caused this crisis in the first place.
