Plan for sweeping governance changes at UL following botched property deals

Recent controversies at University of Limerick posed ‘significant risk to the university’s future success and reputation’, internal report says

UL has been at the centre of controversy following losses of €8 million after overpaying for student homes and a Dunnes Stores stores site in Limerick city centre
UL has been at the centre of controversy following losses of €8 million after overpaying for student homes and a Dunnes Stores stores site in Limerick city centre

Sweeping changes to the culture, corporate governance and property acquisition rules of University of Limerick (UL) are outlined in an internal UL report aimed at restoring trust in the institution after a series of damaging scandals.

UL has been at the centre of controversy following losses of €8 million after overpaying for student homes and a Dunnes Stores stores site in Limerick city centre. The subsequent fallout prompted the resignation of its president, Prof Kerstin Mey, in 2023.

A 50-page “Plan for Renewal: Restoring Trust, Confidence and Pride in University of Limerick” – seen by The Irish Times -details a three-year programme to change organisational culture and overhaul the university’s governance and operating model.

UL’s chancellor, Prof Brigid Laffan, states in a foreword to the report that shortcomings in corporate governance had become “increasingly apparent and problematic” in recent years and posed “a significant risk to the university’s future success and reputation”.

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“Clearly, internal processes were ignored or over-ridden and no lessons were learned. This is an issue of leadership as well as governance.”

The report, which draws on findings from a root-and-branch review by the Higher Education Authority, envisages a “complete transformation of UL’s culture so that behaviours, attitudes and decision-making frameworks are appropriate to a university of the complexity, scale and importance” of UL.

A total of 135 recommendations are contained in the report which covers planned changes to organisational culture and as well as governance. They include:

  • Reviewing the management structure of UL, including the composition of its executive to ensure there is clear definition of roles and responsibilities and appropriate span of control;
  • A fundamental reappraisal of the university’s plans for a city campus;
  • Ensuring all policies and procedures for property acquisitions take on all relevant requirements of public spending codes, backed up by formal independent expert assurance;
  • Increased accountability with appropriate staff, such as a director of buildings and estates or university solicitor, to be responsible for due diligence and signing off on external professional advice;
  • Putting in place more robust measures to monitor declarations of interest by members of the governing authority, employees or consultants;
  • Enhancing the skills and diversity of the governing authority and executive;
  • Stronger oversight mechanisms, clearer decision-making processes and greater accountability in terms of behaviour and actions across all levels of management

The report notes that there is “a need for a deep-rooted cultural change” within the university which, if not addressed, risks a repeat of recent high-profile controversies.

UL’s acting present, Prof Shane Kilcommins, states in the report that the university’s core missions and achievements have been overshadowed by “pernicious and persistent governance failures”.

“Various reports refer to systematic failings of governance. These significant failings are partly due to an inadequate level of robust governance and insufficient checks for ensuring that rules and policies are applied to actual practices,” he states.

“The reform agenda presented here – which is now the central focus of the executive committee and governing authority – is committed to recovery and the restoration of trust in the governance operations of the university.”

Implementation of the reforms will be overseen by a “transformation office”, with a mix of full-time assigned staff seconded from UL and contracted consultants.

Prof Kilcommins states that having strong, consistent and transparent governance standards is central to restoring the trust of its internal and external stakeholders.

“Although it is clear that we have some way to go, this report begins to map the journey back by outlining the recommendations and governance standards that are necessary and assigning ownership, timelines and review mechanisms as part of an implementation process,” he says in the plan.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent