Dundee University’s former principal Prof Iain Gillespie was forced to admit he was “incompetent” during a gruelling hearing before MSPs over the financial meltdown of the institution.

In what was regarded as one of the most brutal committee sessions ever-staged at the parliament, Prof Gillespie endured accusations of being a “good-time Charlie”, a coward, delusional and unable to cope with the demands of the job.

Prof Gillespie, who said he did not consider himself a coward, resigned in December as the university revealed it had run up a £35m deficit and would have to axe up to 300 jobs.

MSPs heard how he had been unaware that it breached a banking covenant until he read about it in last week’s report on the crisis by Prof Pamela Gillies.

While the university was heading into trouble he spent £131,000 in travel and accommodation claims. He told MSPs that there was an agreement that when he went on long-haul flights they would be business class.

“When I was travelling in China, the hotels, from my understanding, were paid for at a corporate discounted rate. So we may have been staying in good hotels but good hotels at a more favourable price,” he said.

Labour MSP Michael Marra accused him of being a “good time Charlie”.

Douglas Ross, chairman of Holyrood’s education, children and young people committee, delivered the most testing challenge, asking Prof Gillespie whether he was corrupt or incompetent. He replied:  “I’m certainly not corrupt, so I’ll have to choose incompetent.”

MSPs asked Prof Gillespie if he would return the £155,000 severance payment and he replied that he “would reflect on it”.

After the hearing, an angry First Minister John Swinney said it would be “the right thing to do”. The Scottish government has committed £62m in two tranches to bail out the university.

Prof Gillespie had begun the session by apologising to staff and students, saying they “deserve better”.

The report by Prof Gillies criticised an “overbearing management and a culture where challenge was often shut down. Prof Gillespie said he “did not recognise some of the characteristics” of his leadership style which were highlighted in the report.

He also rejected comments by Baroness [Wendy] Alexander of Cleveden, a former vice-principal at Dundee as well as being a former Scottish Labour leader and MSP, who claimed this week that she was frozen out then offered a payoff for raising concerns about the university’s management.

He told the committee it had been put to Baroness Alexander that she needed to spend more time overseas and it had been suggested she develop relationships across North America.

Miles Briggs, a Conservative MSP, asked him if he had ever struggled in his role. Prof Gillespie replied: “First of all, when beginning as principal, the imposter syndrome. That challenge was an issue.”