Fears over the future of London Metropolitan University have been raised following criticisms from students and educators regarding the proposed managerial restructuring of the institution.
The uproar from the student community follows a major funding scandal which has seen the resignation of the board of governors, leaving the university in managerial disarray.
The board governors stepped down in late December after pressure from funding managers threatening to withhold from financing the institution if they did not.
This follows the revelation that the university had claimed millions of pounds from public funds to finance students who had, in fact, dropped out.
The Higher Education Funding Council for England is currently considering what actions to take to recoup the £36 million that it paid to the university.
The forced resignation of the board of governors and the vice chancellor has come under fire from the rest of the sector for being both limited in scope and protracted in length.
The general secretary of the University and College Union (UCU), Sally Hunt expressed the need for “one quick blow from the guillotine, and not numerous blows from a blunt axe” in reference to the lengthy deadlines proscribed for officials to leave their positions.
The delayed departures have raised concerns about the ability of the institution to make a fresh start in the new year.
Ms Hunt added: “There is no point in having people who have been so brutally exposed by the damning reports still on the board.
"The new vice-chancellor starts in January and he should be given every chance to get the university back on its feet.”
A joint statement from the HEFCE and the board of governors revealed that the chair of the board of governors, Peter Anywl has until 31 March 2010 to resign his post, whilst those governors serving as members of the board during the scandal were given more than eight months to leave their posts.
Sources within HEFCE had previously indicated that the situation at London Met amounted to, "the worst financial mismanagement in the history of higher education in Britain."
Paul Mackney, until recently Joint General Secretary of the UCU, expressed concerns over the measures taken to sack the individuals responsible for the mismanagement of the university.
According to Mr Mackney, the resignations should not be limited to the board of governors and the vice-chancellor alone.
Commenting on the issue, he said: “Why is Abdul Rahim, the institutions chair of Audit and vice chair, not going...?” He further questioned whether “some members of senior management" were not also "culpable”.
The criticism contradicts the assurances offered to London Met staff by Alfred Morris, the interim vice-chancellor, who said that “the prospects for the new year are now looking much brighter”, attempting to minimise concerns about the lifespan of the institution.