Walter Sisulu University is facing a further possible financial crisis and may need a bailout of R105-million from government.
The Daily Dispatch has learnt that the university may need the money to cover personnel costs in January and February next year.
The pressure on the institution’s finances is reportedly due to management not being able to dock salaries following a “no work, no pay” deal brokered with labour during a protracted strike last year.
This was revealed by highly-placed sources close to the Department of Higher Education and Training (DHET), labour, management and students, who spoke to the Daily Dispatch yesterday.
WSU spokeswoman Angela Church said there were ongoing talks but would not divulge further details.
“WSU held a meeting with DHET officials last month to provide an update on post-administration progress in many different areas.
She said details concerning the deal with labour would be discussed in a meeting with DHET next week.
However, Church said a plan was developed last year where striking staff worked extra hours with no costs. She said the university last year had identified areas requiring finances and appealed for R3.15-billion from government.
“Personnel costs have also been identified as an area of overspending and a new organogram which contains these costs to the national benchmark is nearing completion.”
DHET spokeswoman Kefilwe Makhanya said the department has not received a request for a bail out “at this stage”.
However, she said: “The department will continue to work closely with university management and call them to account whenever serious concerns are raised until such time that we are satisfied that there is little danger of regressing to the levels of poor governance and maladministration that the institution experienced in the past.”
Sources said the department was unhappy with the interim management led by Professor Khaya Mfenyane. A source close to the department said the university had not been able to dock salaries.
“Incompetence of management and bad work ethics are undermining the gains of intervention.
“Management is ganging up with labour to misuse the resources of the university for the benefit of individuals, especially staff, regardless of the effects this has on operations and welfare of students.”
The source said the department had written to the university calling for a meeting to be held before the end of this month where the university would have to detail its plan to improve its finances.
“At the centre of this is that the university failed to implement ‘no-work, no-pay’.
“The department is concerned that WSU has regressed. Increasing personnel costs has been identified as a risk, especially against the reported adjustment of salary benefits to contract workers, an 18.7% increase in the salary budget from R791.7-million to R939.5-million and overspending of salary budget in August.”
Another source close to management and labour said there was a problem with the university finances as salaries were not docked but a plan to catch up and work extra time was developed.
“Mfenyana and his management cannot be blamed for this because the department was in charge of the university at the time when the deal was signed with unions.
“Labour lobbied for Professor Lourens Van Staden to be chair of council because we knew that he would have to chair this mess.
“They are the ones who made political statements that WSU had a break-even budget but we knew that problems were coming.” — msindisif@dispatch.co.za
WSU may face fresh woes
The Daily Dispatch has learnt that the university may need the money to cover personnel costs in January and February next year.
The pressure on the institution’s finances is reportedly due to management not being able to dock salaries following a “no work, no pay” deal brokered with labour during a protracted strike last year.
This was revealed by highly-placed sources close to the Department of Higher Education and Training (DHET), labour, management and students, who spoke to the Daily Dispatch yesterday.
WSU spokeswoman Angela Church said there were ongoing talks but would not divulge further details.
“WSU held a meeting with DHET officials last month to provide an update on post-administration progress in many different areas.
She said details concerning the deal with labour would be discussed in a meeting with DHET next week.
However, Church said a plan was developed last year where striking staff worked extra hours with no costs. She said the university last year had identified areas requiring finances and appealed for R3.15-billion from government.
“Personnel costs have also been identified as an area of overspending and a new organogram which contains these costs to the national benchmark is nearing completion.”
DHET spokeswoman Kefilwe Makhanya said the department has not received a request for a bail out “at this stage”.
However, she said: “The department will continue to work closely with university management and call them to account whenever serious concerns are raised until such time that we are satisfied that there is little danger of regressing to the levels of poor governance and maladministration that the institution experienced in the past.”
Sources said the department was unhappy with the interim management led by Professor Khaya Mfenyane. A source close to the department said the university had not been able to dock salaries.
“Incompetence of management and bad work ethics are undermining the gains of intervention.
“Management is ganging up with labour to misuse the resources of the university for the benefit of individuals, especially staff, regardless of the effects this has on operations and welfare of students.”
The source said the department had written to the university calling for a meeting to be held before the end of this month where the university would have to detail its plan to improve its finances.
“At the centre of this is that the university failed to implement ‘no-work, no-pay’.
“The department is concerned that WSU has regressed. Increasing personnel costs has been identified as a risk, especially against the reported adjustment of salary benefits to contract workers, an 18.7% increase in the salary budget from R791.7-million to R939.5-million and overspending of salary budget in August.”
Another source close to management and labour said there was a problem with the university finances as salaries were not docked but a plan to catch up and work extra time was developed.
“Mfenyana and his management cannot be blamed for this because the department was in charge of the university at the time when the deal was signed with unions.
“Labour lobbied for Professor Lourens Van Staden to be chair of council because we knew that he would have to chair this mess.
“They are the ones who made political statements that WSU had a break-even budget but we knew that problems were coming.” — msindisif@dispatch.co.za
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