The University of Limerick has confirmed it lost €5.2 million after paying inflated prices for 20 houses last year.
UL President Kerstin Mey said independent valuations have confirmed that the university paid “significantly above market price” for properties in Rhebogue near the university.
In a letter sent to students and staff, she said: “This is an issue of major concern for the university in terms of management, governance and reputation.”
The Dáil’s Public Accounts Committee has been examining financial issues at university over recent years and UL representatives are due before the committee next month.
PAC Chair Brian Stanley said that the final bill for the houses could run up to €12.5m.
Speaking on RTÉ’s News at One, Mr Stanley said that houses currently for sale in the same estate are priced around €255,000 but that the price paid by UL could run up to €630,000 per unit.
He said that questions remain on what professional evaluations were conducted.
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Mr Stanley said that if those involved had checked property websites they would have seen what was available.
He also said UL had been before PAC before over its purchase of a site, formerly occupied by Dunnes Stores, on Sarsfield Bridge for €8 million.
Mr Stanley said: “I would have thought lessons were learnt following the Dunnes Stores site which was purchased at more than double the valuation at the time.”
“Did they do comparisons with other homes in that area, did they factor in the extra costs such as stamp duty, any adaptation works to be carried out, why were the lessons of the Dunnes Stores site ignored?”
He asked whether the plan to buy the houses was brought to the governing authority before the purchase and what involvement that authority had.
Mr Stanley also questioned who it was that advised on the purchase of the properties.
