University president asked to consider position in hard-hitting letter by staff 

UL PRESIDENT Professor Kerstin Mey has been asked to consider her position by a number of members of the college’s executive committee over the university paying “significantly above market price” for 20 properties in Rhebogue.

Twenty homes in the city suburb were purchased for more than €11m - or around €550,000 each, on average, before any stamp duty. It has resulted in a financial loss to the college of €5.2m.

A number of members of the executive committee have signed a letter dated Thursday, March 21 - and marked with the word 'urgent' in capital letters - which reads, "We wish to advise you (Professor Mey) that we do not consider it is in the best interests of the University of Limerick for you to continue as president".

They wrote, "We have grave concerns regarding your leadership, judgement, and preparedness to give fair consideration to divergent views".

The purpose of the executive committee is to support the president in ensuring effective leadership, coordination and management of the activities of the university by ensuring and monitoring the delivery of the university’s strategic plan and budget, as approved by the governing authority.

The letter continues: “The university will have to answer to its stakeholders, internal and external, for the financial impairment arising from the Rhebogue acquisition.

“We do not have confidence that you (Professor Mey) will approach this in an appropriate manner. You now have an opportunity to act in the best interests of this institution."

The letter is signed by 10 members of executive committee - Professor Shane Kilcommins, provost and deputy president; John Field, director, management planning and reporting; Dr Sandra Joyce, dean, faculty Arts, Humanities and Social Science; John Kelly, corporate secretary; Professor Norelee Kennedy, vice president research; professor Deirdre McGrath, dean, Faculty of Education and Health Science; Professor Finbarr Murphy, dean, Kemmy Business School; Bobby O’Connor, director, Human Resources Division; Liam O’Reilly, director, Information Technology Division and professor Kenneth Stanton, dean, Faculty of Science and Engineering.

READ MORE: Questions raised over homes occupied by UL students

Professor Mey addressed all staff in an email on Friday, March 22, in which she wrote that 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 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, 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.

“This outcome will be funded from the university’s financial reserves,” said Professor Mey in the email.

She said at December’s meeting of the UL Governing Authority, a decision was approved to carry out a full review of the acquisition of the Rhebogue development. 

“This fact-finding review was commissioned to examine compliance, process (including decision making) and the governance of the key aspects of the transaction. 

“When the review is complete, the governing authority will determine the next steps which I will implement,” said Professor Mey.

The properties are generating rental income towards recovering the capital outlay, she said.

“The Rhebogue development is supporting 80 postgraduate students and researchers to experience the campus in a similar way to how we would like everyone to experience university life.

“It is a matter of regret for me as president and I am aware that there is frustration and anger among staff members that this has happened so soon after the issues that arose in relation to the City Centre Campus.

“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,” said Professor Mey.

Following a query by Limerick Live to University of Limerick this Sunday, they issued a statement which contained the points outlined by Professor Mey in her email to staff.

A UL spokesperson declined to comment further.