The undisclosed sum to Kate San, after Ms. Donelan retracted her comments, was covered by taxpayers.
The Cabinet minister has since faced criticism by Labour and Liberal Democrat ministers and calls to resign.
The minister’s position is “untenable,” and she “must resign,” Ms. Grady added.
The wave of criticism comes following the resolution of the investigation of Ms. San and another academic, Kamna Patel, by the UK Research and Innovation (UKRI).
Last October, Ms. Donelan wrote to the UKRI, suggesting that the two academics expressed sympathy with the Hamas terrorist organisation, following the Oct. 7 attacks in Israel.
She referred to the tweet by Ms. Sang linking to an article by the Guardian on the UK response to the Hamas attacks and saying, “this is disturbing.”
The other investigated academic, Ms. Patel had retweeted a post describing the action of Israel as “genocide and apartheid.”
Both were subsequently investigated by the UKRI to discern whether their actions breached the conditions of their appointments.
“Our intention, as soon as these concerns were raised by the Secretary of State, was to adopt a well-governed process to support evidenced, principled decisions,” the UKRI said in a statement.
Ms. Donelan said that it was made clear to her that Ms. Sang’s comment referred to the “entire Guardian article” as opposed to “just the headline” quoted in the tweet.
Distress
While Ms. Sang said she was “delighted” with the resolution of the matter, she added that she was “very disturbed” by the conduct of Michelle Donelan and the UKRI.“Had they asked me at the start, I would have explained the true position. Instead, Michelle Donelan made a cheap political point at my expense and caused serious damage to my reputation. I propose to donate part of the damages she has paid to a charity,” said the academic.
Similarly, Ms. Patel found the experience “distressing,” saying that “worryingly” the UKRI was apparently “steered by who made the claim and not its substance.”
The firm suggested that a misleading press release by the Policy Exchange think tank served as the base for Ms. Donelan’s allegations. It included just the headline of the article, posted by Ms. Sang, and didn’t include the link to the publication.