THE future of a historic North-East college could be in doubt after a former bursar was jailed for stealing nearly £500,000 from its funds – to buy clothes.

Christine Starkey, 59, who worked at St Chad’s College, part of Durham University, was jailed for three years yesterday.

Durham Crown Court heard how the scale of theft raised concerns from higher education funding bodies and benefactors, many of who are retired clergymen, about the financial systems in place at the 104-year-old college.

Starkey stole £488,281 in 198 instalments between 2001 and last year, and spent the money on clothes and paying off the mortgage on her £240,000 house in Eaglescliffe, near Stockton.

In a victim impact statement, college principal Dr Joe Cassidy said the breach of trust had damaged staff morale and directly affected the lives of students.

Steven Orange, prosecuting, said: “Dr Cassidy explained how the college was devastated, not just that she had been stealing, but stealing so much for so long.

“Public funding is in jeopardy as a result. The university, which governs the college’s spending, has expressed a desire to review the governance of the college.

“If funding is withdrawn, as has been threatened, it would cease to operate as an independent college after 104 years.

It would also cease to exist as a charity.”

The college opened in 1904 and was the only college outside Oxford and Cambridge to allow students to study a university degree alongside theological training for a life in the clergy.

St Chad’s is one of the oldest and most popular colleges in the university and has a student body of 330 undergraduates and 120 postgraduates.

Starkey’s role as bursar gave her control of the finances of the college, which is governed independently.

The court heard she made unauthorised transfers of hundreds of thousands of pounds from college funds to her own and an account she shared with her husband, who is now thought to be living in Spain, and was unaware of her dishonesty.

She stole more than £93,000 from staff wages and failed to bank £10,000 from college laundrettes.

Starkey pleaded guilty to theft and money laundering charges.

Robert Mochrie, mitigating said his client suffered from depression and had an obsessive compulsive disorder for buying clothes.

He said: “On purchasing these items she would have euphoric highs followed by manic lows. Mrs Starkey does not excuse her behaviour and is ashamed.”

Sentencing her, Judge Richard Lowden said: “This is a gross breach of trust.”

Starkey has a previous conviction from 1985 for taking £10,000 from a Teesside car dealership, where she worked.

She was given a suspended sentence for that offence.

Last night, Dr Cassidy said: “The college plans to recover all the stolen money.”

Durham University has pledged to support St Chad’s.

Vice-Chancellor Professor Chris Higgins said: “We have been working with St Chad’s to ensure its financial systems are entirely watertight. We are confident that this will not happen again.”