Higher Education Minister Blade Nzimande has approved the use of R35-million, meant for infrastructure, to pay staff at Fort Hare University.
This was revealed in his response to a parliamentary question on Wednesday asked by DA shadow minister for higher education Professor Belinda Bozzoli.
However, the university’s Democratic Alliance Student Organisation led-student representative council (SRC) president Busisiwe Mashiqa said yesterday this was never communicated to the university community. “This is a concern because it means that there will be delays in provision of infrastructure. The state of our lecture halls and computer halls is bad.
“Where is the university going to get the money to pay it back?”
Mashiqa said this meant the university was in a financial crisis and on the verge of total collapse.
Last month, ANC-aligned groups at Fort Hare submitted a memorandum to the university council calling for the removal of vice-chancellor Mvuyo Tom and other senior managers and citing lack of confidence in their ability to manage the finances of the university.
A meeting was held on November 27 to discuss the matter.
The Daily Dispatch understands that a council decision was scheduled to be communicated to stakeholders on Wednesday but the meeting was postponed.
Mashiqa said the ANC-aligned groups did not consult the SRC.
UFH spokeswoman Zintle Filtane confirmed yesterday that Nzimande’s department had been approached to advance the university an amount of R35-million for operational expenses.
“You will recall that earlier this year the university had indicated that if its strategies to recover debt from students , it would not be able to fund its operations. The student debt could not be recovered as the ‘#FeesMustFall’ campaign intensified and included that the students with debt should be assisted.”
Filtane said stakeholders were aware that the last two months of the year were going to be a difficult period in terms of cash-flow.
“That was shared with them in various meetings and through electronic communication.
“The staff’s main concern was getting their salaries.
“They were informed that all steps would be taken to ensure that the university would be afloat and that included approaching the department.”
Nzimande said the funds would be used to pay operational costs.
“In November 2015, the University of Fort Hare informed the department that it has continued to experience financial strain and requested approval to utilise R35-million of its infrastructure grant to enable short-term relief. Approval was granted and the university must reimburse this amount from its subsidy in April 2016.”
Nzimande said this was not going to negatively affect the infrastructure provision.
He said the university was requested to submit a turnaround strategy to manage its cash-flow problems and “bring it onto a sound financial footing”.
Bozzoli said the funding was effectively to keep the university from complete financial collapse.
“It is an unsustainable solution,” she said.
Blade okays R35m crisis fund at UFH
This was revealed in his response to a parliamentary question on Wednesday asked by DA shadow minister for higher education Professor Belinda Bozzoli.
However, the university’s Democratic Alliance Student Organisation led-student representative council (SRC) president Busisiwe Mashiqa said yesterday this was never communicated to the university community. “This is a concern because it means that there will be delays in provision of infrastructure. The state of our lecture halls and computer halls is bad.
“Where is the university going to get the money to pay it back?”
Mashiqa said this meant the university was in a financial crisis and on the verge of total collapse.
Last month, ANC-aligned groups at Fort Hare submitted a memorandum to the university council calling for the removal of vice-chancellor Mvuyo Tom and other senior managers and citing lack of confidence in their ability to manage the finances of the university.
A meeting was held on November 27 to discuss the matter.
The Daily Dispatch understands that a council decision was scheduled to be communicated to stakeholders on Wednesday but the meeting was postponed.
Mashiqa said the ANC-aligned groups did not consult the SRC.
UFH spokeswoman Zintle Filtane confirmed yesterday that Nzimande’s department had been approached to advance the university an amount of R35-million for operational expenses.
“You will recall that earlier this year the university had indicated that if its strategies to recover debt from students , it would not be able to fund its operations. The student debt could not be recovered as the ‘#FeesMustFall’ campaign intensified and included that the students with debt should be assisted.”
Filtane said stakeholders were aware that the last two months of the year were going to be a difficult period in terms of cash-flow.
“That was shared with them in various meetings and through electronic communication.
“The staff’s main concern was getting their salaries.
“They were informed that all steps would be taken to ensure that the university would be afloat and that included approaching the department.”
Nzimande said the funds would be used to pay operational costs.
“In November 2015, the University of Fort Hare informed the department that it has continued to experience financial strain and requested approval to utilise R35-million of its infrastructure grant to enable short-term relief. Approval was granted and the university must reimburse this amount from its subsidy in April 2016.”
Nzimande said this was not going to negatively affect the infrastructure provision.
He said the university was requested to submit a turnaround strategy to manage its cash-flow problems and “bring it onto a sound financial footing”.
Bozzoli said the funding was effectively to keep the university from complete financial collapse.
“It is an unsustainable solution,” she said.
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