University of Limerick drops legal action over expenses claims

The University of Limerick is to terminate legal proceedings for defamation against the Limerick Leader newspaper over a report claiming financial irregularities in the treatment of expenses claims.

The newspaper reported last September that two employees at the university had been offered €60,000 severance packages in return for silence over expense claims.

Irregular claims

An independent review commissioned by the Higher Education Authority (HEA) confirmed earlier this year that some staff at UL had filed irregular claims including mileage payments for trips between home and the college.

However, the review found all inappropriate claims were challenged and, ultimately, none of these payments were issued.

The findings prompted the HEA to express concern over a “culture of inappropriate” expense claims at the university.

It also said it was not satisfied the issue of the alleged failure of more senior staff to give direction and support to their colleagues – where authorisation of expense payments was sought – had been adequately addressed.

In response to queries from The Irish Times, president of UL Don Barry said in a statement that he had issued instructions to the university's legal representatives to terminate the legal proceedings.

Good governance

He said the allegations contained in the Leader's report were untrue and had the potential to severely damage the university's reputation for good governance.

"This reputation is vital to UL. So, we immediately called on the Leader to correct the record. As the newspaper did not do so, we issued the proceedings," he said.

"Both the university and the Leader are important institutions in the mid-west and, until recently, we have had a strong and supportive relationship throughout my time as president.

“So, I think that this course of action is in the best interest of both parties and indeed of the wider community in the mid-west region. I want the university to move on and concentrate on what it does best – working hard for our students, our many supporters and our region.”

Alan English, editor of the Limerick Leader, welcomed the university's decision.

"They should never have been issued in the first place. We have stood by our story at all times and it led directly to the the wide-ranging Mazars review into activities at UL, which vindicated the three whistleblowers whose story has been told by us," he said.

The Mazars review was prompted by three individuals in the college’s finance department who raised concerns over expense claims and the actions of senior managers after they highlighted their concerns.

One of the whistleblowers - Leonie O’Callaghan - left the university in 2012 with a financial package after a period out on sick leave.

Two other women are technically still employees of the university, according to UL, but have been suspended on full pay as a result of a “separate but active disciplinary process”.