UL unable to provide evidence of evaluating €8m site purchase
Limerick In Purchased For Limerick, Ul Was In Valued Dunnes Street, 2017 University By At Despite Picture: Sarsfield Stores, Which Been 2019 Having €3m Of €8m
The University of Limerick (UL) proceeded with the purchase of a vacant site in Limerick city, allegedly for €5m above its value, despite concerns raised by members of its own governing authority.
The university cannot currently provide evidence it undertook an independent evaluation of the former Dunnes Stores site on Sarsfield's Bridge before it purchased it for roughly €8m in 2019. It has since emerged that the site was valued at just €3m in 2017.
UL also continued to pay the salary in lieu of notice of its former president Des Fitzgerald for a number of months following his resignation from the university, as well as legal costs totaling €35,000.
Further details on this and other matters emerged as officials from UL, including Professor Kerstin Mey, president of the university since 2020, appeared before the Public Accounts Committee (PAC).
“It sounds a bit like this has been treated like Monopoly money,” said Catherine Murphy, Social Democrats TD, about the purchase of the Dunnes Stores site.
“This is public money, and the valuation appears to be way in excess of the value of the site.”
PAC chair and Sinn Féin TD Brian Stanley asked Prof Mey if any members of the governing authority raised concerns about the lack of due diligence around the purchase of the site.
“Yes, concerns were raised,” she replied.
When asked if the governing authority approved the purchase of the site, she confirmed it did.
The PAC also heard it is likely somewhere in the region of €200,000 was spent on legal fees in work around protected disclosures in 2019. Marc MacSharry, Fianna Fáil TD, said he had been contacted by Person C, a whistleblower at UL, ahead of the university's appearance and had been authorised to speak on their behalf. The university's statement that Person C has agreed to the terms of a full and final settlement made Person C feel "sick to their stomach", he told the committee. Person C believes the statement was "deceptive and misleading," he added.
KPMG has been commissioned to investigate the acquisition of the Dunnes Stores site. The PAC heard that Mary Harney, the chancellor of UL, was appointed to the KPMG public interest committee in December 2019. Andrew Flaherty, director of the human resources division at UL, confirmed Ms Harney was appointed to the KPMG board but said he was not aware if she was still serving.
Imelda Munster, Sinn Féin TD, asked if it was standard practice that the university pays a notice period for all employees who resign. Former UL president Des Fitzgerald, who resigned in May 2020, continued to be paid until the end of the year.
Mr Flaherty said Mr Fitzgerald gave six months' notice. He was involved with the university for two months before the governing authority made a decision to pay in lieu of notice to appoint an interim president due to the challenges of Covid-19.
"I can't comment on why the president felt the need for a legal team as part of the resignation process but, as part of that, it was agreed by both sides that the legal fees would be covered, but it is unusual."