The University of Limerick (UL) pursued a flawed student accommodation scheme despite vocal objections and concerns expressed to relevant officials, as conveyed to Members of Parliament (MP) by the university. Key details were allegedly not disclosed to the University’s administration when sanctioning the contentious arrangement in the summer of 2022, according to Prof. Shane Kilcommins, UL’s vice-chancellor and acting president, in a statement to the Public Accounts Committee (PAC) ahead of a Thursday meeting.
He asserted that there had been, in essence, a breach in management controls, and the concerns raised concerning this procurement were not sufficiently taken into account. The committee is examining a series of significant governance-related failures which resulted in UL paying an excess of over €5.2 million for a total of 20 student houses purchased for more than €11 million.
University president Prof. Kerstin Mey, who has been unwell since March, conceded that the university paid deliberately more than the market price for the Rhebogue properties, situated approximately 3km from the main campus. Prof Kilcommins’ PAC statement, which was shared with all university staff on Wednesday, included this information.
He added that in late 2021, a developer’s representative proposed a plan to the Chief Corporate Officer (CCO) aimed at addressing the lack of accommodation. An offer to use Rhebogue, which had been granted planning permission for 20 homes and deemed feasible, was made. This involved transforming the houses to increase the bedroom count. The champions of this project were the CCO and the Chief Financial and Performance Officer (CFPO).
Prof. Kilcommins continued that not everyone believed Rhebogue to be a suitable solution and these parties presented their apprehensions and protests to the project organisers. Yet, the organisers went ahead with the project which ultimately received approval from the governing body. The declaration further stated that the governing authority authorised the project unanimously after a presentation in a meeting held on August 2nd, 2022. However, names of the officials involved have not been disclosed in Kilcommins’ account.
Subsequent revelations suggest that pertinent details, essential for the ruling body’s decision-making process, were notably missing. This included essential details about potential planning risks, valuations, and funding patterns.” He stated, “The ruling entity was misled into believing that key figures were part of the team and in full support; however, this was not the reality.”
He further stated, “We’ve since received a planning warning notice explicating the viewpoints of the Limerick City and County Council regarding the houses’ utilisation as student lodgings. A response has been submitted, and the case is now with An Bord Pleanála.
“Upon finalising the deal, a liability regarding stamp duty came to light. This forced an upscale in the net outlay for the houses, necessitating UL to look into the ‘carrying value’ of these assets.
“UL’s external auditors must approve the valuation, but there are hints that it will lead to a substantial financial devaluation, anticipated to be in the realm of €5.225 million.”