TUT: More financial irregularities come to light
Certain questions remain to be asked regarding the circumstances of Professor Johnny Molefe's tenure as Vice Chancellor at the Tshwane University of Technology (TUT). In particular, his approval of plans to develop a university town in Ga-Rankuwa, at a cost initially estimated at R2.2 billion, raises a number of serious concerns.
This programme is now in its second planning phase, following the completion of an expensive feasibility study and the development of the Ga-Rankuwa "Master Plan", which was concluded in 2009.
These plans may seem to be a positive development, but this project has been dogged by a number of irregularities right from the start:
The TUT's former Chief Financial Officer, Dr Doeke Tromp, refused to pay out an amount of R133 million from the University's Reserve Fund as initial capital for the project. His reasons for doing so were that it would have been extremely irregular, as the fund was created only for educational purposes, and because there was no business plan for the project. Shortly thereafter, his contract was terminated and he had to leave the university.
The nature and extent of the planned developments are such that it amounts to town planning and development. A great deal of land would have to be purchased, rezoned and consolidated for this purpose. Money meant to be utilised for the development of the TUT would in reality be utilised to develop the town of Ga-Rankuwa.
The feasibility study that was conducted indicates that at least R17 million would have to be spent on demolishing existing well-built structures. This is extravagant expenditure that a floundering university can ill afford.
The fact that these plans have been handled as a highly confidential matter was defended in documentation with the argument that premature publication would cause land prices to sky-rocket. This would amount to unfair treatment of the current owners of the earmarked land.
Commenting on these plans during a broadcast of Carte Blanche on Sunday, the Acting Director General of the Department of Higher Education and Training, Mr Gwebs Qonde, pointed out that it is illegal for a university to take on commercial developments in this manner. It was apparent that the Department had not been informed of these plans.
It needs to be asked whether building a university town was in any way justified, since the eleven TUT campuses do not have adequate infrastructure and facilities. Surely this should be the university's priority? The manner in which this project was launched and handled so far raises questions as to the myriad opportunities it would have created for individuals to enrich themselves illegally, at the cost of educating our youth. In light of this, I believe that all expenditure on this project should be suspended, and a full investigation launched into its procurement and financing processes.
Lastly, it has also come to my attention that the Northwest Technikon, one of the four institutions that merged to form the TUT, was bankrupt at the time of the merger, and, before the merger took place, it unlawfully received a subsidy of R6 million from the Department of Higher Education and Training for what turned out to be "ghost" students. The Technikon was headed by Professor Molefe at the time. The TUT had to repay this amount to the Department after the merger, but it appears that the Department then refunded the amount to the TUT.
I am planning to put written questions to the Minister this week about what happened to the initial R6 million subsidy to the Northwest Technikon, and why the Department refunded it to TUT. I will also be asking what will happen with the plans for a proposed university town in Ga-Rankuwa now that an administrator, Professor Themba Mosia, has been appointed to extricate the university from this mess, and to restore order.
Statement issued by Dr. Junita Kloppers-Lourens, MP, DA Shadow Minister of Higher Education and Training, September 1 2011
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