“Are You Incompetent or Corrupt?” Ex-Principal Gillespie Grilled by MSPs

By Connor Bertie & Nick Whelan

"I don’t recall" was the most common answer given by Ex-Principal Iain Gillespie when faced with ferocious questions from MSPs.

Under fire since he announced a £35m deficit and subsequently departed from the university last year, Gillespie was given an opportunity to explain himself in Holyrood this morning.

Pictured: Former Principal Iain Gillespie in Holyrood today. Watching from behind: Deputy-Editor Connor Bertie. Source: Scottish Parliament.

Beginning at 8:30am, the meeting went on for three hours. Within that time, Gillespie was continuously questioned on his involvement in losing the university millions, and how that cash depleted so rapidly.

Despite his governing role during the time leading up to and during the financial crisis which placed the future of the university into question, Gillespie said:

"I push back against saying I almost destroyed it [the university]."

More than once, he confessed "sincerely" that he shared in the responsibility in the disappearance of £35m. However, all MSPs present shared in their disbelief in his apologies.

It was confirmed back in May that Gillespie had received six months salary after abandoning his post. As part of his contract, he walked away with at least £150,000 whilst 700 of his staff were in danger of losing their jobs.

When asked if he was going to pay that back to the university, he very easily said:

“No, I’m not going to pay that money back. It was not in my thought process.”

However, towards the end of the meeting, once thoroughly grilled, he backtracked saying he would reflect on his decision.

DUCU Co-President Melissa D'Ascenzio. Source: Connor Bertie

"It seems unfair that staff should pay the price for this financial mismanagement and abject leadership failure," said DUCU Co-President Melissa D'Ascenzio. "I welcome Prof. Gillespie’s statement that he will consider returning his severance package to the University. Most staff taking voluntary severance or being made redundant will not receive anywhere near such a generous payoff, despite having no involvement in creating this mess."

Gillespie admitted that he had not watched yesterday’s deliberation featuring his own former senior staff, on account of "travelling to get to here." Where exactly he was coming from that took more than four hours remains a mystery, but Convener Ross commented that Gillespie did indeed travel a lot.

Former UEG members at yesterdays Education Committee. Source: Scottish Parliament

Frequent Flyer

Gillespie took 14 foreign trips throughout his tenure as Principal, stating that he flew business-class with all "long-haul" trips. He travelled to many places, including Iraq, Malawi, Nigeria, and his well-known holiday destination: Hong Kong.

The last of these destinations produced an expenditure of more than £7000, of which £4723 was used to pay for his business-class flights alone. Other staff members who accompanied him were allocated to premium-economy.

Gillespie was also due to return to Hong Kong on the day of his resignation, in which he sent a text message as a letter of resignation, in early December 2024.

MSPs Dig In

Dundee based MSP Michael Marra quizzed Gillespie on his apparent lack of action at a time when it was evident the university was facing an "existential" financial crisis. Marra drew reference from the Gillies report, and senior management sources within the university to question Gillespie on his inaction between spring 2024 and his resignation in December of the same year, asking "what were you doing to try and save 3000 jobs?".

Gillespie suggested he looked to cost saving measures, including a voluntary severance scheme through "analytical discussions with the senior team".

However, as Gillespie was reminded, the employment headcount at the university continued to rise throughout this period and Professor Gillies had made clear the university management could have changed the direction of travel for the university on various occasions.

"£35m in required savings had been identified in a budget which you [Professor Gillespie] had signed off and yet no action to deliver against any of them"

Gillespie suggested that the executive group "cycled around" the various options available, which was "burning money" at the time.

Gillespie was later quizzed regarding financial statements for 2023/2024 that were put to him throughout the period of "inactivity." These statements made direct reference to the fact the university were facing a deficit in the tens of millions of pounds.

He suggested that he was largely unaware of the level of the deficit due to "insufficient sighting" of information, and his reliance on the finance team. This was despite the fact the audits containing the level of the deficit displayed his own handwritten amendments to be made before finalisation.

Gillespie was branded a "good time Charlie" principal, having made the previously mentioned 14 international trips throughout his tenure, and remaining largely inactive over the developing crisis and difficult decision making. In response to this Gillespie stated he and senior management had "not recognised the urgency of the situation regarding the breached banking covenants" and "had an insufficient focus on our own cash reserves".

The "banking covenants" in question are rules which are agreed to with banks and lenders to enable the university to access credit. As Professor Gillies referenced, these covenants had been breached. It is highly significant that an institution of this size breached these rules, potentially preventing them from accessing their main line of credit to mitigate the deficit.

Rather than borrowing further, university management took the decision to deplete vital cash reserves. This is the main reason Dundee has suffered worse than other universities.

This move is highly unusual for institutions facing this type of difficulty. Marra said that an accountant would almost always advise further borrowing from lenders. Gillespie stated he had received "no advice to the contrary" regarding this move.

Students and Staff Share Their Thoughts:

"The evidence provided by Iain Gillespie in front of the Education Committee is a testimony to the failures of senior management already highlighted in the Gillies report." D'Ascenzio continued.

"It is heart-breaking to realise how a prestigious Institution with dedicated staff and a lively student community, has been brought to its knees by a deadly cocktail of incompetence and hubris.

"Most of all, the Gillies report has highlighted a catastrophic collapse of governance structures under the hands of a few bad actors. It is time for a reform of governance that allows for more democracy, transparency, and scrutiny."

An anonymous source at DUSA said: "I saw the first half hour, and he was getting battered like a fish supper."

Tánaiste Custance, incoming DUSA President said:

Tánaiste Custance. Source: Connor Bertie

“Gillespie epitomised the craven nature of the senior leadership at our university. He should donate that £150,000 he does not deserve to those who do: students. That would be a meaningful apology but given the evidence of his arrogance I won't be checking DUSA's bank account with bated breath.

“We must ensure our next permanent Principal and Chair of Court behave democratically. Students deserve nothing less.”

Hearing from staff and students of Dundee University, it is clear that answers given across the two-day hearings leave staff, students and taxpayers with more questions than were answered.

What is clear however, is that the former UEG members: Jim McGeorge, Peter Fotheringham, Amanda Millar, Shane O'Neill and Iain Gillespie will bear the brunt of the blame for the crisis going forward.

Whatever the next steps are, The Jute Journal will be there to inform you of what is going on.

Check out STV News tonight at 6pm and BBC Scotland at 7pm to see The Jute Journal team sharing their thoughts!