MONTREAL - The provincial government has slammed Concordia University with $2 million in financial penalties for handing out severance benefits worth $3.1 million to five staff members in recent years.
The cash will be deducted from the institution for the 2012-2013 year.
Education Minister Line Beauchamp, denounced "certain inappropriate management choices" in a letter dated 8 March and forwarded to Peter Kruyt, Concordia's Chairman of the Board of Governor.
"I mentioned several times that I was concerned about the slew of departures from Concordia and their budgetary impact," Beauchamp said in the statement Friday.
In a subsequent interview with The Canadian Press, she said universities need to get the message they can't just spend haphazardly.
"What we're telling universities is this: 'You're managing money that comes mainly from taxes. You can't run it just like any other business.'
"Universities are autonomous, I agree, but there is a responsibility in managing public funds."
She was partly referring to a compensation package given to Judith Woodsworth President and Vice Chancellor, who was let go in December 2010, midway through a five year-mandate, only to be rehired again later in another post.
Frederick Lowy, President and Vice-Chancellor of Concordia University, responded in a press release stating that he, "understands and shares the concerns" of Minister Beauchamp.
He said an independent auditing firm will undertake a review of human resource management to senior management of the university.
"We will not hesitate to implement any measures that will result from this examination," he added.
The government's decision to take action against Concordia surprised the opposition Parti Quebecois which for months raised questions about the financial management of universities.
MNA Marie Malavoy accused the Charest Liberals of acting at this time as a way to appease the discontent of students opposed to higher tuition.
With files from The Canadian Press
