Regulators open inquiry into University of Greater Manchester amid fraud claims

The University of Greater Manchester is being investigated by England’s higher education regulator amid mounting allegations of financial misconduct, bribery and bullying.The Office for Students will examine whether the former University of Bolton had “adequate and effective management and governance arrangements” in place as well as guidance that upheld public interest governance principles.The university could be fined or face sanctions if it is found to have breached one or more conditions of its registration with the OfS.In May, Greater Manchester police officers confirmed they were investigating “allegations of financial irregularities” after extensive reporting by the Manchester Mill news site.Sir George Holmes, the university’s vice-chancellor for more than 20 years, was suspended along with two senior staff after an internal investigation by PricewaterhouseCoopers, which was commissioned by the university.In July, Greater Manchester police said detectives and investigators from their major incident team had been looking into “suspected fraud and bribery” and had carried out searches of seven properties in Greater Manchester and in the south of England to seize evidence. It was reported in August that the Serious Fraud Office was involved in discussions with police over the investigation.Rick Jackson, the Manchester force’s lead for crime, intelligence and forensics, said it was likely to be “a complex and lengthy investigation into serious allegations of fraud and bribery”. No charges have been laid.The Manchester Mill had reported that senior staff tried to send hundreds of thousands of pounds in tuition fees to a private company through a recruitment partner in Morocco, and paid the same company millions of pounds in international marketing fees.Phil Brickell, the MP for Bolton West, wrote to the Department for Education in February over his concerns about the university’s financial arrangements involving the “off-campus site” in Morocco and allegations of bullying and racism. Brickell told the education secretary, Bridget Phillipson, that he was “disappointed by the lack of urgency on show from the Office for Students” in investigating the matters.The university’s staff passed a vote of no confidence in Holmes and the university’s executive and the University and College Union said: “We remain extremely concerned about the allegations of racism, financial irregularity, and incompetency levelled at senior leaders. Staff are crying out for honesty and transparency and we now expect a thorough explanation of the circumstances and allegations.”When Holmes and the two other staff members were suspended, a university spokesperson said: “These suspensions are a precautionary measure and do not imply any assumption of guilt.”In December last year, the university was approved by the OfS to change its name from Bolton to Greater Manchester, despite complaints from neighbouring institutions including the University of Manchester.