The Université du Québec à Montréal holds the most debt of any school in the province after mismanaging two real estate endeavours, reveals a recent report.
Auditor-general Renaud Lachance blamed the failure of these projects, amounting to over $759 million, on former UQAM rector Roch Denis, his former associates Mauro Malservisi and Nicolas Buono, the boards of UQAM, the Université du Québec and the provincial ministry of education.
Although Lanchance called the losses “unavoidable” and did not identify UQAM members by name, his report contests that both Malservisi and Buono “showed a lack of transparency and provided often incomplete and often inaccurate information.”
Denis, who is also left unnamed, was slammed for proposing projects without obtaining financing guarantees and thorough analyses of profitability.
Both projects were funded by the UQAM’s line of credit.
UQAM also asked the government for millions towards both projects, believing both would be self-financing and obtain money from office rents, student residences and parking fees.
Poor management raised the cost of the Pierre Dansereau science complex by $122 million, while the Îlot Voyageur project expenses rose by $196 million since its proposal in March 2005.
This real estate debacle has driven UQAM’s per capita debt up from $7,397 to over $17,000, forcing the university to cut programs to meet its budget.
The June 4 report notes that the boards of UQAM are proficient in daily business matters, but their staff of professors, students and others lack the knowledge to deal with complex financial issues like construction plans.
A day after the report went public, Education Minister Michelle Courchesne told reporters that Quebec’s director of criminal and penal prosecutions is examining the report to determine if charges should be laid.
Courchesne also said a new bill will be introduced this fall to tighten governance at Quebec universities.
