Warwickshire College must open up books as boss goes on leave and union probe reveals lavish spending of public money

UCU has demanded Warwickshire College opens up its books after discoveries of bumper pay rises for senior managers and hundreds of thousands of pounds given to a group, formed by a principal now on leave, for 'educational concepts'. There are currently 99 jobs at risk of redundancy at the college.

On Friday (27 June) staff were told that the college's principal Mariane Cavalli was going on 'temporary leave of absence with immediate effect' and that chair of governors Sue Georgious would become interim principal immediately. No explanation has been given as to why this has happened.

Through the response to its FOI request the union has discovered:

• Mariane Cavalli, the principal of the college, enjoyed a pay increase of £50,000 in two years*
• by contrast staff have seen their real-terms pay fall by 16% in the past five years and this year were offered another below inflation pay rise of just 1%
• one unnamed senior manager enjoyed a bonus of £15,000
• the controversial Gazelle Group of colleges, founded by departing principal Cavalli, has received over £500,000 from the college.

The college pays £35,000 a year to be a member of the Gazelle group of colleges. Gazelle was founded in 2011 by five college principals including Mariane Cavalli. According to reports, the college has spent more than £200,000 on purchasing shares in Gazelle Transform Ltd and a further £324,000 for services in connection with developing a 'new education concept' with Gazelle Global Ltd.

In May, Cavalli said a shortfall in funding of £3m made job losses at the college seem 'inevitable'. On 19 June the college wrote to UCU to say that up to 99 jobs were at risk of redundancy.

UCU regional official, Anne O'Sullivan, said: 'Almost 100 members of staff at the college might lose their jobs, pay has been driven down in recent years and yet we are starting to uncover details of massive pay rises for a principal now on leave and for other senior managers.

'The college needs to open its books up and explain why such large sums were given to the Gazelle group of colleges and what new education concepts are and why they cost £324,000. We also need to know what has been spent on overseas travel and expenses, why senior managers got such big pay rises and who is getting a bonus on top of their salary and why.

'The time has come for proper scrutiny of colleges' spending. We would urge the Public Accounts Committee to properly investigate how taxpayers' money is being spent by our colleges.'

Note

* The accounts show that in 2011/12 the principal's salary was in the region of £170,000 to £180,000. The following year (2012/13) it was between £190,000 and £200,000 and in 2013/14 it had increased to between £220,000 and £230,000.