Memorandum from the Parliamentary Office
NATIONAL ASSEMBLY
FOR WRITTEN REPLY
QUESTION 3983
DATE OF PUBLICATION OF INTERNAL QUESTION PAPER:
16/11/2015
(INTERNAL QUESTION PAPER 49 OF 2015)
Prof B Bozzoli (DA) to ask the Minister of Higher Education and Training:
1) Is he aware of any universities which are at risk of being unable to pay
their debts between now and the end of the 2016-17 financial year; if
not, what is the position in this regard; if so, in respect of each
specified university, (a) why is this the case, (b) what is the projected
budget deficit in the (i) 2015-16 and (ii) 2016-17 financial years and
(c) what steps will he take to prevent any possible liquidations from
happening;
2) has (a) he or (b) his predecessors ever provided bailouts to
universities; if so, (i) when, (ii) to which institutions and (iii) what
amounts were paid in each case;
3) does he expect that it will be necessary to provide bailouts to any
universities in the (a) 2015-16 and (b) 2016-17 financial years; if so,
(i) why, (ii) to which institutions, (iii) when and (iv) what amount will
each bailout be?
NW4851E
REPLY:
1) Yes.
a) In November 2015, the University of Fort Hare (UFH) informed the
Department that it has continued to experience financial strain and
requested approval to utilise R35 million of its earmarked
infrastructure grant to enable short-term relief. Approval was granted
and the University must reimburse this amount from its subsidy in
April 2016. This will not negatively impact on the progress of
projects.
b) Operating deficits are projected for UFH in the 2015/16 and 2016/17
financial years.
c) The University was requested to provide a turnaround strategy to
manage the cash flow constraints and bring it onto a sound financial
footing.
2) The Department does not provide bailouts to universities. The Annual
Ministerial Statement on University Funding deals with the funding
instruments to steer the university sector, and is issued in accordance
with the requirements of the Higher Education Act, 1997 (Act 101 of 1997
as amended) and the funding framework for universities (Government
Gazette, No 25824 of 9 December 2003). All universities are funded as
explained in this statement.
3) No. As indicated, the allocation of the total funding available to
universities is articulated in the approved Annual Ministerial Statement
on University Funding. The 2014 statement for the 2015/16 and 2016/17
financial years is available on the Departmental website.
Compiler/contact persons:
Ext:
DIRECTOR â GENERAL
STATUS:
DATE:
REPLY TO QUESTION 3983 APPROVED/NOT APPROVED/AMENDED
Dr BE NZIMANDE, MP
MINISTER OF HIGHER EDUCATION AND TRAINING
STATUS:
DATE: