City planners have declared that the mismanaged student accommodation project at University of Limerick, which has caused much upheaval, is not authorised as student housing. This revelation adds to the university’s woes as it recently confessed to paying over €5.2 million in excess for 20 residences in the facility.
In light of a damning report on the €11 million purchase, the university’s president, Professor Kerstin Mey, has gone on sick leave. The report has sparked the institution’s regulator, the Higher Education Authority (HEA), to commence a fresh probe into the transaction and scrutinise the university’s overall governance and culture.
The document written by Niamh O’Donoghue, a former civil servant, for the university’s governing body, allegedly criticised the conditions under which the deal was finalised with Silvergrove Developments, solely directed by a Limerick accountant, Sean Sheahan. The report also apparently flagged issues regarding the homes’ planning status at Rhebogue, some 3km from the university’s main campus, which were bought specifically for student accommodation in 2022.
Even though approximately 80 students have been residing in the Rhebogue homes since October last year, the local authority, Limerick City and County Council, issued a warning letter to the university questioning the legality of using the houses as student lodgings. The university retaliated formally, disputing these allegations, however a final decision is yet to be declared by the officials.
Amidst this ongoing tumult, the council has given an unfavouravle judgement to Silvergrove concerning its application from October for the retention of certain boundary and landscaping features at Rhebogue. The council stated that the proposed development seems to be linked to a site deemed unfit for student accommodation. Given this controversial use, the council is unlikely to grant permission for the retention of associated works.
Meanwhile, the university refrained from commenting on the council’s decision or any planning issues, only noting that the Rhebogue transaction is still being examined.
Attempts to contact Mr Sheahan, owner of Silvergrove’s overseeing company Zalbury and current sole director of Silvergrove since December 2022, were unsuccessful. His appointment followed the departure of ex-directors Virginia Keogh and Aidan O’Brien. The Irish Times attempted to reach him via his professional email last Friday, without response.
The University of Limerick (UL) may soon be subject to interference from the education authority and its funding might be jeopardized following a failed housing project. These emerging planning issues amplify the ongoing concerns facing UL, which is under strong scrutiny from the Higher Education Authority (HEA) while negotiations proceed to establish the scope of a new inquiry. Senior management staff at UL will discuss these issues with HEA leaders during a planned three-day visit from April 23rd to April 25th.
The cause of a significant overpayment remains ambiguous, however, UL’s governing body has signified that the consequential deficit may impact governance, financial administration, and potential future support.
Despite facing potential rigorous examination at a Dáil Public Accounts Committee gathering on April 11th, Prof Mey has indicated her inability to participate due to health constraints.
Furthermore, a transaction involving the Rhebogue and a depreciation of €3 million on the valuation of a previously purchased Dunnes Stores site in 2019 by UL are subjects of ongoing scrutiny by the Comptroller and Auditor General.