Aberdeen University may be ordered to repay part of its £70 million grant if it is found to have breached official rules over a six-figure payment to its former principal, it has emerged.
The potential sanction was unveiled today by the Scottish Funding Council (SFC), as the higher education governance body outlined the remit of its probe.
In June, The Press and Journal revealed that the SFC had launched an inquiry into a £282,000 payment to Sir Ian Diamond.
The money was paid to Sir Ian for working his notice, after serving in the top job at the historic institution for seven years.
He had announced that he planned to retire in August 2017, but only triggered his year-long notice period in July 2018, the same month he officially stepped down from the prestigious post.
An SFC review committee will now consider the university’s compliance with the terms and conditions of its grant for teaching and research, which is to be £70.7m in the coming year.
Near the end of 2019, it is then expected to produce a report outlining its “findings of fact”, as well as recommendations to the SFC board as to whether or not the institution has complied with the terms and conditions of its grant.
Recommendations could include “any sanctions to be applied, including repayment of grant”.
It is understood that if this sanction was to be applied as a result of the review it would be a proportionate sum, not the full grant.
SFC chief executive Karen Watt said: “It is important that we are able to conduct a full and fair review with a remit that is appropriate to our role as a funding council.
“We are grateful for the co-operation of the university in supporting the review which we intend to publish upon its conclusion.”
Esther Roberton, senior governor at Aberdeen University, said: “The university is co-operating fully with the review.”
