/ 13 February 1998

UWC debt collector’s odd deal

Andy Duffy

The man responsible for controlling student debt at the University of the Western Cape (UWC) was tied to a bizarre contract for most of last year, which gave students the power to oust him.

Student debt had more than doubled to R60- million, steering UWC toward bankruptcy, by the time Professor Ikey van de Rheede’s probationary contract with the students ended three months ago.

UWC vice-chancellor Cecil Abrahams says he does not believe the contract and the power it gave students over Van de Rheede compromised his will or ability to crack down on student debtors. But Abrahams says management of fee and debt collection was generally weak last year. He adds that the university council will never again allow its students such influence over senior appointments.

Van de Rheede, formerly dean of arts and professor of Afrikaans and Nederlands at UWC, was appointed vice-rector (student affairs) in October 1996 – subject to the students’ 12-month probation clause.

This followed an appointment process involving every stakeholder on the campus. He was not a widely popular choice.

”When he accepted the appointment, the students were not keen on having him appointed straight away,” Abrahams says. ”The council expressed its concern, but [the probationary period] was probably one of the only ways we could have the issue finalised.

”The council allowed itself to merely ratify the decision taken by a process, including the probationary agreement. I think [Van de Rheede] was trying to do what he thought was the best job … It is unfair to blame one particular person [for the ballooning debt].”

Van de Rheede’s contract has nevertheless surprised and upset some university staff, who claim it is a stark example of the muddled thinking that landed UWC in its current financial mess.

Student debt to UWC stood at R28-million at the start of last year. Van de Rheede’s proposals for collecting the debt and fees included minimum registration payments of just R200. Many students failed to pay even that.

Abrahams says he and the rest of UWC’s executive agreed to the proposals, but Van de Rheede and registrar of finance Andre de Wet were responsible for monitoring the process. Neither was available for comment.

As the scale of the debt became clear late last year, Van de Rheede opened negotiations with the students, finally tabling payment proposals for 1998 that were far harsher than his requests for 1997. These included upfront fees ranging from R2 000 to R2 500, and a minimum contribution of 40% of outstanding debt.

The students initially agreed, but then reneged, leaving UWC dependent on its overdraft with Standard Bank to cover costs. UWC hit its R6-million overdraft limit last month, forcing Abrahams to warn staff in an internal memo that closure was imminent.

Days after the memo went out, however, the bank extended the overdraft to R10-million, with an interest rate of 19,25%. Abrahams says the overdraft and funds raised from students so far should enable UWC to cover its R12-million-a-month staff costs until April, when the first subsidy from the government comes through. Student debt has now dropped to around R49-million, he adds.

Van de Rheede and the students’ representative council agreed earlier this week to slightly revised registration terms. Abrahams estimates that fewer than 500 of the near-8 000 students who owed UWC are really too poor to pay.

As of Wednesday this week, UWC had 2 100 students registered. Just 800 of the debtor students had met UWC’s registration terms.

* The senate at the University of Stellenbosch voted this week to effectively hand vice-chancellor Andreas van Wyk another five-year term when his current contract expires in June. The university’s Student Alliance for Transformation, representing groups including political parties on the campus, says it will ask the university’s council to insist Van Wyk outline his vision for the next five years before merely reappointing him.

The senate and council will meet next Monday to finalise the reappointment decision.