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Birmingham Post
Birmingham Post
Business
Sion Barry

Sacked Swansea University academics 'eliminated' personal interests in Wellness Village project, tribunal told

Academics sacked for gross misconduct by Swansea University for seeking to gain personally with equity stakes in the £200m Life Sciences and Wellness Village project said a new model “eliminating” any interest was known to the university before their dismissals, an employment tribunal has heard.

Former dean of university’s school of management, Prof Clement and colleague Steven Poole were dismissed in 2019 for gross misconduct following a lengthy internal disciplinary process. They both subsequently lost their appeals. While not connected to the wellness village project ownership structure, former vice-chancellor of the university Prof Richard Davies, was also sacked for gross misconduct. He is not involved in the case for unfair dismissal brought by Prof Clement and Mr Poole, in which they are representing themselves.

The proposed wellness village project at Delta Lakes in Llanelli followed the signing of a collaboration agreement between the university, Carmarthenshire County Council and private healthcare firm Sterling Health - which was planning to be the project’s private sector development partner. The abandoned project, which has been succeeded with a new and completely separate wellness project - Pentre Awel - was seeking £40m in funding from the City Deal for the Swansea Bay City Region.

Swansea University has maintained that the promise of future equity for the claimants in future companies relating to the wellness village project had not been disclosed - as required under its ordinances, contrary to the views of the claimants.

Mr Poole referred to tribunal documents showing an equity related chart with individual shareholdings that has been drawn up by chief executive of Sterling Health Franz Dickmann.

He claimed that he and co-claimant Prof Clement had subsequently played a key role in “eliminating” the structure which they could have gained personally from.

Mr Poole referred to a report commissioned by Carmarthenshire County Council and carried by Cardiff law firm Acuity to look at the governance arrangements for the wellness village project, following the initial collaboration agreement.

Mr Poole, reading from the document, said: “The advice from Acuity to Carmarthenshire Council is that the stakeholders establish new corporate vehicles for the project in the form of companies limited by shares. They identified a holding company, a property company and an operating company. By setting up new companies we can ensure that the companies are clean from the outset... so as to offer the best protection for the council. They go on to say that within the shareholder agreement it is important that the council maintain a veto on key decisions so that Sterling doesn’t take actions unilaterally."

Questioning witness and chair of the disciplinary process Prof Martin Stringer, a pro-vice chancellor at Swansea University, Mr Poole said: “In the investigation disciplinary process and your appeals process much was made of the Franz Dickmann and Sterling diagrams. They were an important part of the evidence?

Mr Stringer confirmed they were, but said he could not recall seeing the Acuity document outlined.

Referring to the Acuity document, Mr Poole said: “Would you agree it is a fundamental document in this case? Prof Stringer replied: “No, I don’t think I would.”

Mr Poole then referred to the cross examination of chair of Swansea University’s council, Bleddyn Phillips, at the tribunal last week. He added: “In his evidence to this tribunal Mr Phillips the chair of the university council, chairman of the disciplinary panel, held the view that by November 2018, prior to the suspensions, everyone was aware that new companies had to be established, ie not adopting any existing Sterling companies for the wellness village.

“We were at this situation whereby everyone understood there were going to be these new clean companies. So, any problem of equity in Sterling companies, this is my interruption of it, really had no bearing on it. The position was clear by then.”

Addressing Mr Stringer, he said: “Are you aware that the claimants played a key role in the elimination of the very structure in the Llanelli wellness village that they were said to gain from?"

QC acting for Swansea Council in the tribunal, James Laddie, interjected by saying: “That is being presented as an established fact. I am not really sure what Mr Poole is referring to, but that is certainly not an established fact.”

The tribunal continues.

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