President exit deal cost college €110,000
THE former president of the University of Limerick sought a year’s wages from the university after tendering his resignation.
A deal was later struck that cost University of Limerick (UL) €110,000, including legal costs on both sides.
Des Fitzgerald resigned from UL in May 2020 after three years in charge, citing concerns over the Covid-19 pandemic. He had been in charge at the university at the time the controversial Dunnes Stores site was bought for €8million.
During an appearance in front of the Oireachtas Public Accounts Committee (PAC) yesterday, chancellor Mary Harney confirmed that there was no notice period contained in his employment contract.
‘The then-president [Mr Fitzgerald] said he wanted to be paid for a year through his legal advisers,’ the former tánaiste said.
‘Bizarrely, his contract had no notice period. Obviously, I didn’t want to pay a year. We wanted to minimise, so negotiation took place between our external lawyers and the former president’s lawyers.’
A six-month notice period was agreed upon by both parties. This was paid by way of salary in respect of two months of holiday entitlements and payment of €65,355 for the remaining four months. Mr Fitzgerald worked remotely until August 2020.
Legal costs paid by UL on the matter amounted to €45,625. Some €30,250 related to costs incurred by the former president and €15,375 was incurred directly by the university.
‘Contract had no notice period’
In total, Mr Fitzgerald’s resignation cost the university a sum of €110,980. UL and its chancellor were insistent that this was not a severance package. Ms Harney defended not making the Department of Public Expenditure aware of the payment or seeking sanction. However, Comptroller and Auditor General Séamus McCarthy told Sinn Féin’s Matt Carthy that he believed the arrangement amounted to a severance package.