The President of University of Limerick (UL), Prof Kerstin Mey, is confronting an escalating dilemma with her management, following a poorly managed student housing project that saw the university coughing up €5.2 million above market price for 20 properties. These residences, located in Rhebogue and just 3km away from the university grounds, were bought for a significantly higher cost than they were worth, putting the university’s management, governance, and reputation at risk.
The situation compounds the university’s financial troubles as it was already projected to incorporate a €3 million deficit in its accounts for the financial year 2022-2023, due to overspending on a previous property purchase for a new campus in Limerick City.
In the coming days, a meeting of the UL governing authority – the organ responsible for the university’s managerial oversight – will examine the problematic housing deal. This meeting is scheduled a week after another committee (which guides the president and which the president herself leads) suggested that Prof Mey reassess her role, following a lack of confidence in her ability to address the overspending.
The no-confidence sentiment was stated openly in a letter signed by all 10 members of the executive committee – as reported and confirmed by the Limerick Leader – asserting that Prof Mey continuing as president is against the university’s best interest. This is particularly of note, given that Prof Mey, with her background in art and visual culture, made history in 2020 by becoming the first female president of an Irish university, and was officially imbued with the office for a 10-year term in October 2021.
When queried about the situation, both Prof Mey and the UL Chancellor, Prof Brigid Laffan, opted not to provide an official response. Prof Laffan took up her role in November of the previous year, following former tánaiste Mary Harney.
The Rhebogue project is currently under examination by PricewaterhouseCoopers, along with the Comptroller and Auditor General’s office, the Department of Further and Higher Education, and the Higher Education Authority. Chairman of the Dáil public accounts committee, Sinn Féin TD Brian Stanley, emphasised that repeated failures, such as the ones witnessed during the Dunnes site agreement, should be avoided. He announced the committee’s intention to bring up the project’s issues during an April hearing.
Professor Mey conveyed last week that 2,000 staff members were informed via email of unexpected issues with the Rhebogue agreement due to new independent valuations of the homes. 20 homes were procured by UL from a private developer in 2022, and they’ve housed 80 postgraduate students since October 2023.
However, these valuation changes were part of a review of the transaction commissioned due to concerns expressed by the governing body and UL’s executive management. The probable impact of this will be a financial loss for the university adding up to around €5.2 million. As described by Prof Mey, this depreciation along with the loss from the Dunnes site will result in a fiscal deficit for the 2022-2023 financial year, flipping a predicted surplus.
A ‘fact-finding review’ was launched in December by the governing body. Prof Mey stated in his email that the review was examining the transaction’s compliance, process, decision-making and governance.
UL, however, has not disclosed any further information regarding the identity of the reviewers or any other details pertaining to the Rhebogue valuations. Expressing regret over these recurrent issues in his role as president, Prof Mey acknowledged the frustration and anger felt by the staff members.