WSU asks for R105m

Scathing government correspondence reveals that Walter Sisulu University (WSU) asked for a R105-million state bailout to pay salaries next year and may even lay off staff.

Neither WSU or the Department of Higher Education and Training (DHET) would confirm or deny that the university was facing financial woes.

The Daily Dispatch has seen a letter written by DHET director-general Gwebinkundla Qonde to WSU interim vice-chancellor Professor Khaya Mfenyana, asking tough questions about his ability to manage the university’s finances now that the government-appointed administrator has left.

WSU spokeswoman Angela Church confirmed a letter had been received and said a meeting to discuss the issues set out in the correspondence was scheduled for yesterday in Pretoria. She declined to comment further.

The meeting was also mentioned in the letter, in which Qonde wrote: “The department is concerned that the situation at WSU has regressed to an extent that the university reportedly now requires a bailout of R105-million to cover personnel costs for January and February.”

Qonde said the rising staff bill had been identified as a major risk to the institution’s financial stability.

It included an adjustment of salary benefits to contract workers, an 18.7% increase in the salary budget from R791.7-million to R939.5-million and over-expenditure of its salary budget in August 2014.

He said the university’s annual report did not reflect the “no work, no pay” deal signed with unions last year.

“The management of the university finances and assumptions that the government will bail out the university is at the very least extremely worrying, especially in light of the fact that there is no serious attempt by the management to deal with the university’s financial management,” Qonde said, adding the university would have to produce in yesterday’s meeting reports detailing their plans to tackle financial challenges.

These include:

lA fiscal growth strategy;

lManagement of projects and cost recovery strategy;

lCost-saving measures and operational expenditure items placed on hold;

lProgress on the organisational structure, including voluntary severance and retrenchment packages;

lThe number and status of contract staff;

lBackdated payments of salary benefits to contract workers including the legal documentation in this regard;

lImplementation of the “no work, no pay” deal;

lNational Student Financial Aid Scheme matters;

lCosting of student fees;

lA student debt plan; and

lManagement of grants.

DHET spokeswoman Kefilwe Makhanya said there was ongoing engagement between the department and the university.

“We will continue to work closely together to find solutions to any challenges that might arise,” Makhanya said. — msindisif@dispatch.co.za