ONE of Scotland’s biggest colleges has been accused of raiding a charity to bankroll a £2.1m plan to pay off staff.
Funds released by the independent City of Glasgow College Foundation (CGCF) will pay for voluntary severance deals at the City of Glasgow College (CGC).
The CGCF was set up in 2013 to provide "financial support" for projects and activities of the CGC and had around £10m at its disposal.
However, under a controversial plan, the foundation, has awarded money to assist with staff restructuring.
Jodie Waite, National Union of Students Scotland Vice President Education, said: "That the coffers of these arm’s length foundations are being raided by college bosses, with no consultation with the students or staff who’ll be impacted, beggars belief."
However, a college source said the restructuring was essential due to meeting the costs associated with an average nine per cent pay rise for lecturers nationally.
The CGC, led by principal Paul Little, is in talks with staff over plans to restructure the organisation, which involves voluntary severance.
In an internal bulletin for members, the Educational Institute of Scotland (EIS), has claimed that the CGC could axe dozens of posts.
However, the planned method of funding the exit payments is proving to be just as controversial as the plan itself.
An EIS source said: “We are surprised that the college has been awarded £2.1m by a charitable foundation, set up ‘for the advancement of education’, to do the opposite - cut education.”
The CGCF website lists a range of activities that it can support, such as helping students financially under certain circumstances, assisting with study and travel scholarships to allow students undertake educational visits, and providing funding for prizes and awards.
In 2014, the Foundation approved a grant to the CGC of around £580,000, which would part-fund the development of a ship’s engine room within the new Riverside Campus.
The Foundation’s latest accounts reveal the charity paid out £2.7m in grants in the year ending March last year and had £7.9m in reserves.
A CGC spokesperson said: “City of Glasgow College is undertaking a leadership reorganisation to improve our student learning experience, provide a step-change in performance and to safeguard the college's long term financial health. It is financing this reorganisation with additional funds agreed by the foundation. As an entrepreneurial institution, it is absolutely appropriate that the college uses all available funding without seeking further financial assistance from the Scottish Funding Council.”
A spokesperson for the foundation said: "The foundation is established to provide financial support for the projects and activities of the college. It is entirely appropriate for a grant to be made to help secure the sustainable future of the college in providing education to its students.”
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