England's higher education regulator has opened a formal investigation into the University of Greater Manchester, following mounting allegations of financial fraud, bribery, and systemic bullying within the institution.
Regulator and Police Launch Parallel Probes
The Office for Students (OfS) will examine whether the university, which rebranded from the University of Bolton last year, has "adequate and effective management and governance arrangements" in place. The inquiry will assess if the institution's leadership upheld public interest governance principles. Should breaches of its registration conditions be found, the university could face significant fines or other sanctions.
This regulatory action runs parallel to an ongoing criminal investigation by Greater Manchester Police (GMP). In May, GMP confirmed it was looking into "allegations of financial irregularities" after reports by the Manchester Mill news site. The probe escalated in July, with detectives from the force's major incident team investigating "suspected fraud and bribery" and executing searches at seven properties across Greater Manchester and southern England to seize evidence. By August, it was reported that the Serious Fraud Office was in discussions with police about the case.
Senior Leadership Suspended Amid Allegations
The university's internal investigation, conducted by PricewaterhouseCoopers, led to the precautionary suspension of three senior staff members. This group includes Sir George Holmes, the institution's Vice-Chancellor for over two decades. A university spokesperson stated the suspensions did not imply guilt.
The allegations are severe and multifaceted. The Manchester Mill reported that senior staff attempted to channel hundreds of thousands of pounds in tuition fees to a private company via a Moroccan recruitment partner, alongside paying millions in international marketing fees to the same entity. These financial arrangements concerning an "off-campus site" in Morocco, coupled with claims of bullying and racism, prompted Bolton West MP Phil Brickell to write to the Department for Education in February. Brickell expressed disappointment at the perceived lack of urgency from the OfS at the time.
A Crisis of Confidence and a Controversial Rebrand
The crisis has shattered staff morale. University employees have passed a vote of no confidence in Holmes and the executive team. The University and College Union highlighted deep concerns, stating: "Staff are crying out for honesty and transparency."
This scandal unfolds against the backdrop of the institution's recent rebranding. In December of last year, the OfS approved its name change to the University of Greater Manchester, despite objections from neighbouring universities, including the prestigious University of Manchester. Rick Jackson of GMP indicated the criminal investigation is likely to be "a complex and lengthy" process. No charges have been brought to date.
