TWO Scottish universities have been criticised after it was revealed they have pocketed at least £1.7 million from Colonel Gaddafi's Libyan regime.

Strathclyde and Dundee have both been criticised for accepting student fees paid by the Gaddafi Government and Libyan oil companies.

The chaotic civil war in Libya has thrown the spotlight on higher education bodies’ financial ties to the discredited regime.

Sir Howard Davies resigned as a director of the London School of Economics earlier this year following a row over the LSE’s links to Gaddafi’s son, while Huddersfield University was criticised for training Libyan police officers.

Critics of the arrangement fear that universities, by accepting students from Libya, are helping train people who are part of Gaddafi’s governing apparatus.

As the full extent of the financial relationship between UK universities and the despotic regime was revealed, several institutions pulled out of deals to educate Libyan students.

It has now emerged that Strathclyde, one of Scotland’s most prestigious research institutions, has accepted nearly £1.2m from Libyan sources since 2008.

The vast bulk of the cash -- £1.07m -- came from student fees paid by the country’s embassy, known as the Libyan People’s Bureau. Nearly £300,000 of the embassy funds were paid in the last financial year, 2010-2011.

Tory MP Robert Halfon, who has campaigned for an inquiry into academic links with the country, said universities that took money from Libya had “lost their moral compass”.

News of the links comes days after Foreign Secretary William Hague expelled the remaining Libyan diplomats from the UK, while offering the tyrant’s opponents a chance of representation in London.

Another chunk of Strathclyde’s Libyan income (£85,875) came directly from three oil companies: Mellitah Oil and Gas BV, Mabruk Oil Operations, and RAS Lanuf Oil and Gas Processing.

Nearly £14,000 of the £1.2m was paid directly by Libyan students, which included fees for tuition, accommodation and graduation.

A spokesman for Strathclyde said the cash for was a “range of courses”, and did not say whether the financial relationship with the Libyan embassy had ended.

Dundee University received £814,600 from Libyan groups and individuals between 2008 and 2011, of which around £713,000 came from the People’s Bureau.

Both universities have also confirmed paying for staff trips to Libya. The six trips funded by Strathclyde, mostly relating to engineering, cost £14,557, while sending two people to a conference event cost Dundee £481.

Mr Halfon said: “I remain incredibly concerned some of our universities have lost their moral compass, and have taken money from the Libyan regime and its associates.

“There needs to be a full inquiry into academic involvement in Libya, and I believe universities that continue to receive money from Libyan sources should see a reduction in public subsidy.”

Liam McArthur MSP, the Scottish Liberal Democrat Education spokesperson, said: “Given the controversy surrounding the Gaddafi regime, the public will be understandably concerned at the extent to which Strathclyde and Dundee appear to be reliant on income generated through the Libyan People’s Bureau.

“Both universities must take urgent steps to reassure ministers and the public about these figures.”

A spokesman for Dundee University pointed out some of the fees were for dentistry courses, adding: “Libyan students, as with those from other countries, are entitled to come and study in Scotland provided they meet the key criteria of being qualified for the course, having the necessary funding, and that they’ve been granted an educational visa by the UK Government to come and study in this country”.

A spokesman for Strathclyde said: “Like the majority of UK universities, the University of Strathclyde recruits students from a wide range of countries, including Libya. This funding is used for the education of Libyan students.”