The trustees of fashion school Shenkar have rejected the central conclusions in a highly critical report, deciding the institution's president would remain in office. Shenkar College of Engineering and Design internal auditor Ezra Yehuda found that Prof. Amotz Weinberg has held the office for longer than permitted by the Council for Higher Education, and that managerial oversight - including the international board of governors and the executive committee - function poorly and partially. At their Wednesday meeting, the governors called the report's findings "technical."

In an unusual response, British businessman Stephen Rubin resigned as chair.

The audit - defined as secret - was commissioned in response to charges of serious managerial irregularities. The auditor found the executive committee and governors faulty and "passive," and that the long-term academic plan was not properly approved.

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The Council for Higher Education asked Shenkar for a copy of the report more than two weeks ago, but council vice chair Prof. Yehezkiel Teller says Shenkar management has not yet provided it. As a result, as well as due to other suspected irregularities, the council has implemented sanctions against the institution and will delay approving new curricula.

Weinberg has been president for 12 years, despite a council decision limiting terms to 10 years. The report charges that Weinberg did not inform the board of governors of the limit, although many of its members are foreign businesspeople and donors. Weinberg associates say the council regulations "are just recommendations."

Meeting participants say those who tried to comment on the severe findings in the report were verbally attacked and not given the floor. In an e-mail interview, Rubin said "the board of governors refused to allow the auditor to present a summary and presentation on the findings."

Before the meeting, Rubin announced that in light of the severity of the findings, he would immediately establish a search committee for a new Shenkar president, but a 48 to 3 majority of the board of governors rejected the search committee idea and approved extending Weinberg's term until 2010.

In response to Rubin's resignation, British businessman Mark Worth also resigned from the board of governors. "This is a sad day for the college," Worth wrote in an e-mail. One man's ambitions, he said, have been placed above the nourishing of students. Worth called this "unforgivable." He added: "Amotz, you and your colleagues should be ashamed of yourselves."

Weinberg declined to be interviewed. His associates say there was no need to present the report or hold an in-depth discussion, as board members received the report in advance and were familiar with its contents. In the board meeting, Weinberg said 70 percent of the faults that merited it, had been corrected. He and other board members called the shortcomings merely technical and procedural.

Shenkar's spokeswoman said the international board of governors expressed "complete confidence" in Weinberg, and that Ramat Gan Mayor Zvi Bar noted in the meeting "Shenkar's achievements as one of the best academic institutions in Israel under the management of Prof. Amotz Weinberg."