Evidence wa ka Ngobeni
The country’s historically black higher education institutions, already rocked by huge student debt, financial deficit and massive cash flow problems, are likely to be merged or face closure in the next five years.
New Minister of Education Kader Asmal this week indicated that under his leadership higher education institutions will not receive additional resources and his ministry will be looking at rationalising tertiary institutions.
Education department sources say universities are likely to merge into strong institutions which “can respond to the challenges of the 21st century”.
Although Asmal says his intent is not to close down struggling institutions, education analysts say his vision will have a significant impact on the already cash-strapped universities.
Institutions like the Medical University of South Africa (Medunsa) and the universities of Transkei, Fort Hare, North-West, Zululand and the North are in desperate need of government grants to stay afloat.
“Given the magnitude of our other priorities,” Asmal says, “it is unlikely higher education will receive additional resources.”
The six universities in crisis have incurred huge deficits and have accumulated student debt totalling more than R250- million in the past three years.
The six have recorded low student enrolments, which reduces the amount of funding they receive from the government.
In light of their already reduced government subsidies, the universities are increasingly relying on student fees to finance their institutions.
An increasing number of black students are leaving historically black universities for formerly white universities. This has resulted in low registration at the black universities, which means they need even more financial support from the government.
Higher education currently receives 14% of the national education budget. This is likely to decrease next year, among other things because of the low student enrolment.
Asmal says the current funding figures are “well in line with international spending”.
It is important, he says, “that funding levels to the [higher education] sector are sustainable, while institutions become more efficient and accountable for the utilisation of their intellectual, infrastructural and financial resources”.
Hardest hit is the University of the North, with a student debt of more than R90- million accumulated in the past six years.
Most of the students who owe the university have no money to pay, or have left for other institutions.
Other students who manage to settle their fees largely use government loans. But when they complete their studies, they often struggle to find employment – most employers prefer students from technikons – and so are unable to repay their loans.
The University of the North, based in the Northern Province, is in desperate need of new facilities. More than 10 students’ residences on the campus stand empty this year.
Despite its huge financial shortfall, allegations of rampant financial mismanagement have emerged at the campus. The allegations are being investigated by the Heath special investigating unit.
The University of Fort Hare, in the Eastern Cape, has a financial deficit of between R40-million and R60-million, and an outstanding student debt totalling R27- million.
An external inquiry has charged that its administration fails to follow correct financial and management procedures.
The University of North-West has overdrafts of between R30-million and R40-million. It is owed more than R15-million by its students.
Asmal’s predecessor, Professor Sibusiso Bengu, last year appointed advocate Louis Skweyiya to investigate the University of Transkei. It is owed about R54-million and has overdrafts projected at R34-million. Skweyiya’s report led to the departure of the university’s rector, Alfred Moleah.
The University of Zululand, which is owed more than R56-million, is experiencing its lowest enrolment in years.
On the declining enrolments, Asmal says: “The reason needs to be better understood. The long-term sustainability of individual institutions and the system as a whole requires that growth be promoted in a planned and responsible manner.
“As part of the ongoing planning process, I will be asking all universities and technikons to inform me of their intake targets for the year 2000 and the recruitment strategies for attaining these targets.”
Despite their huge financial shortfalls, the six embattled universities have emerged as the highest-paying institutions in the country.
The University of the North, for example, is paying its vice-chancellor, Biki Minyuku, more than R900 000 a year.
The parliamentary portfolio committee on higher education recently recommended that forensic audits be conducted at all the universities in the country.
The audits, which began last month, are expected to be completed by the end of the year.