62% of South African Universities are in financial distress
24 August 2016
A reply to a DA parliamentary question has revealed the extent of the financial crisis faced by university’s across the country.
The reply reveals that 16 out of the 26 universities in South Africa, or a staggering 62%, will face financial distress in the 2017/18 year.
Specifically, the aggregate deficit across these 16 universities is projected to be R3.97 billion for the same financial year.
The universities in question, ranked in order of deficit size starting with the largest, are:
1. Walter Sisulu University
2. University of Limpopo
3. University of KwaZulu-Natal
4. University of the Witwatersrand
5. Tshwane University of Technology
6. Rhodes University
7. University of Fort Hare
8. Cape Peninsula University of Technology
9. Central University of Technology
10. Vaal University of Technology
11. University of Cape Town
12. University of the Western Cape
13. Mangosuthu University of Technology
14. North West University
15. University of Johannesburg
16. University of Venda.
The extent of the financial distress is based on modelling conducted by the Council on Higher Education (CHE). This is most likely attributable to the protracted underfunding of our university sector for more than two decades.
The DA was able to identify R2.73 billion in the 2016/17 budget which could have been transferred to assist poor students as well as give universities enough subsidies to pay the bills. The ANC rejected these proposals and directly contributed to the dire financial position universities are now facing.
Our universities have been facing an uphill financial battle with no end to this crisis in sight as the Minister of Higher Education and Training tinkers with policy solutions to mitigate this impeding destruction of our university sector which will leave students in a worse off position that they are already in.
The chronic financial neglect by the ANC government now threatens the institutions who are responsible for creating new the generations of skilled labour therefore putting the very future of our country at risk.
The financial crisis at universities has a massive impact on the poorest of students, putting their futures at risk. It will also have far reaching knock on implications for our economy as essential research produced at universities is put under pressure.
While a terrified ANC does nothing but form a larger of pronouncements without solutions around Luthuli House, the DA has been looking for a way forward, making submissions to the Commission for Higher Education.
The DA will continue seeking a long term solution to the problem of affordable quality higher education. Sadly, the longer the ANC waits to take responsibility for this catastrophe, the more difficult the solution will be.
Statement issued by Prof Belinda Bozzoli MP, DA Shadow Minister of Higher Education and Training, 24 August 2016
