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In July 2008, it was reported that the university was facing a financial crisis. The London Met has allegedly been misreporting student dropout figures for years, so HEFCE is proposing to recover at least £15m of overpayments in 2008-9. In February 2009, HEFCE revised the overpayment figure to £56 million, which they are seeking to recover.
On March 19, 2009, in response to the crisis, Vice-Chancellor Brian Roper resigned immediately but continued to be paid until December 2009. In May 2009, Alfred Morris, former Chancellor Lampeter of the University of the West of England and Wales, was appointed interim Vice-Chancellor.
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The government announced in May 2009 that it would launch an independent inquiry into whether HEFCE colluded with London Metropolitan University in failing to investigate the incredibly low dropout rate. The investigation, which ended in November 2009, reportedly placed the blame on Vice-Chancellor Brian Roper, as well as other senior managers and the council. After the report was complete, the HEFCE president called for the resignation of “senior staff” and the entire council, noting that HEFCE did not believe the university’s management could effectively protect public funds. Rumours circulated among staff and government ministers that HEFCE could withdraw funding after the deadline pointed out by HEFCE chief executive Alan Langlands expired, effectively forcing the university to close.
A November 2009 report commissioned by the university found that Vice-Chancellor Roper had “primary responsibility and culpability” for the finances: Roper and some administrators were aware that the university had been applying its own interpretation since 2003 Since then, funding rules (and not the funding committee’s) on student dropouts, but no action has been taken. The university’s governing council and audit committee have an oversight role that makes them ultimately “responsible for such a severe financial failure”, meaning they “must take full responsibility”.
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