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Memorandum from the Parliamentary Office
NATIONAL COUNCIL OF PROVINCES
FOR WRITTEN REPLY
QUESTION 375
DATE OF PUBLICATION OF INTERNAL QUESTION PAPER: 11/10/2013
(INTERNAL QUESTION PAPER 29 OF 2013)
Mr M J R de Villiers (DA-WC) to ask the Minister of Higher Education and
Training:
a) When was the Walter Sisulu University put under administration, (b) how
much was (i) owed to (aa) creditors and (bb) the banks in respect of
overdraft and (ii) paid in each case, (c) which banks were owed in this
regard, (d) how was this amount paid, (e) from which budget was it paid,
(f) which department paid the amounts and (g) what criteria was used to
ring fence the money?
CW505E
REPLY:
a) Walter Sisulu University (WSU) was put under administration on 30
October 2011, with the appointment of Professor LR Van Staden as the
Administrator.
b) (i) (aa) R211 million was owed to creditors.
(bb) R50 million overdraft with First National Bank.
(ii) R211 million was paid to creditors and R50 million was paid to First
National Bank.
c) First National Bank
d) The overdraft was paid by the university to the bank at the beginning of
January 2013.
e) WSU paid its outstanding creditors and overdraft from their own budget.
f) The university paid the amounts owed.
g) The university faced major financial challenges linked to a large amount
of outstanding student debt. The majority of students owing fees were
from poor backgrounds and had not received sufficient financial
assistance from the National Student Financial Aid Scheme (NSFAS) to
cover their costs. The demand for financial assistance at WSU
outstripped supply with the result that the NSFAS allocation had been
spread to as many students as possible by granting smaller awards to a
larger number of students (a practice known as âtop slicingâ). This
resulted in eligible students not being granted the full cost of study
they desperately required.
The National Skills Fund (NSF) provided a special allocation of R310
million to assist WSU in clearing the backlog of student debt that not
only threatened academic continuity, but also the future sustainability
of the institution and potential economic contribution of the affected
students. This allocation from the NSF enabled WSU to meet its
commitments. NSFAS applied set criteria and conditions applicable in
allocating bursary funding to the students.
Compiler/contact persons: Ms Pearl Whittle
Ext: 5248
DIRECTOR â GENERAL
STATUS:
DATE:
REPLY TO QUESTION 375 APPROVED/NOT APPROVED/AMENDED
Dr B NZIMANDE, MP
MINISTER OF HIGHER EDUCATION AND TRAINING
STATUS:
DATE: