Gerry McKenna has relinquished his position as vice-chancellor of Ulster University after an investigation into complaints about his "conduct and capability" - but his appointment to a new role of "president" has prompted widespread criticism.

In a brief statement earlier this week, Ulster announced that Professor McKenna would return to the university after seven months on gardening leave on August 1 to take up the post of president.

Part of his new role will be to travel the world promoting the university's interests.

Richard Barnett, the acting vice-chancellor, said: "Professor McKenna will relinquish his duties as vice-chancellor to concentrate on his role as president.

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"In expectation that considerable progress can be made in that role over the next year, Professor McKenna has decided that he wishes to retire from the university with effect from July 31, 2006."

Complaints regarding Professor McKenna's "conduct and capability... in maintaining and promoting the efficiency and good order of the university" - dismissed by the former vice-chancellor - were investigated by Sir Michael Buckley earlier this year.

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Although the Buckley report has not been made public, senior sources at the university claimed that it found sufficient prima facie grounds to establish a formal disciplinary tribunal to hear the allegations.

But the university's governing council decided last week to offer him the departure package instead to avoid the risk of further damage to the university's reputation that might be caused by a period of suspension and a lengthy tribunal.

It is understood that Professor McKenna will collect his full ?193,000 vice-chancellor's salary in his new role as president.

The post includes a brief to help raise funds for the university abroad, primarily in the US, Canada and elsewhere in Europe. Professor McKenna will also be responsible for a major alumni programme and will be expected to build business links in East Asia.

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One senior member of staff at Ulster said: "Many people wanted to see a proper tribunal as this could look like a reward for failure."

Sammy Wilson, the MP for East Antrim, called for a full ministerial inquiry into the deal.

He said that there were still "serious questions" that had not been answered - not least what exactly the Buckley report had found. He said the details of the financial package offered should be made public.

"Direct rule has allowed far too much secrecy to creep into our public bodies," Mr Wilson told The Belfast Telegraph .

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"The new minister should be seeking answers and should be publishing them."

phil.baty@thes.co.uk