THE two senior managers investigated over the funding crisis at London Metropolitan University will not be disciplined, it emerged this week. No further action is being taken against the university s Director of Finance Pam Nelson and Deputy Vice-Chance

THE two senior managers investigated over the funding crisis at London Metropolitan University will not be disciplined, it emerged this week.

No further action is being taken against the university's Director of Finance Pam Nelson and Deputy Vice-Chancellor Dr Robert Aylett who were both investigated after it emerged that �36.5m was claimed in funding for thousands of non-existent students.

An inquiry in November last year revealed the university, which has campuses in Whitechapel, Aldgate, Moorgate and Holloway, failed to keep track of students or ensure they sat exams at the end of the year.

Governors were forced to resign and an investigation into the scandal was authorised in March by the legal firm Eversheds.

But the report, presented to the board last week, concluded there was "no basis for taking any disciplinary action" against the two senior managers.

Vice chancellor, Professor Malcolm Gillies, who took up the role after his predecessor Professor Brian Roper resigned, said the university will start paying back the money in September through repayments of �10m a year.

He said: "I am pleased that through this external report - the fifth report into this sorry tale - the threat of any disciplinary action is lifted from individual colleagues. "However, the university recognises that there is need for reform of senior management arrangements and development of a more open style of university administration.

"The university is trialling new management structures, and shall confirm future arrangements over the summer.