Ncaba Ntshakala
Minister for Education and Training Owen Nxumalo has dismissed claims that the University of Eswatini’s (UNESWA) financial difficulties stem from the government’s failure to remit subventions and tuition fees.
Speaking during a press conference held at the Ministry’s offices, Nxumalo clarified that as of November 19, 2024, all payments due to the university, including student allowances, had been fully disbursed by the government.
He emphasized that the financial challenges faced by UNESWA were not a result of negligence on the government’s part but reflected broader issues within the institution’s financial management.
Nxumalo disclosed that considering UNESWA’s precarious financial position, the government had already advanced part of the December subvention to the university to ease its immediate cash flow constraints.
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He highlighted additional steps taken to address the university’s financial instability, including the Ministry of Finance’s facilitation of agreements with key service providers which include Eswatini Water Services Corporation, Eswatini Electricity Company, and SwaziMed.
These agreements ensure the continuation of essential services to the institution despite outstanding liabilities. Letters of comfort were provided to these entities according to the Minister, which highlights the government’s dedication to maintaining UNESWA’s operational stability.
In his statement, Nxumalo stressed the government’s dedication to supporting the university, pointing to an ongoing investigation by a Task Team set up to examine the institution’s financial and operational issues.
He expressed optimism that the Task Team’s findings, due to be presented in December 2024, would provide actionable insights to stabilize UNESWA and enhance its financial management.
Nxumalo assured the public that the report would be made public to promote transparency and accountability.
UNESWA Vice-Chancellor Professor Justice Tfwala corroborated the minister’s statements, apologizing on behalf of the Executive Member whose earlier comments had implied government negligence.
Tfwala acknowledged the efforts being made by the government to alleviate the university’s challenges and reaffirmed the institution’s commitment to collaborating with the Ministry to address its financial woes.
The Minister also read a press statement during the conference, elaborating on the mechanisms used to disburse funds to UNESWA.
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According to Nxumalo, subventions are processed quarterly, with the Ministry of Education submitting invoiced claims to the Treasury Department on behalf of the university.
The Treasury then divides the total amount into three monthly payments, ensuring a consistent flow of funds to UNESWA.
He stressed that this system had been adhered to and that the government had even expedited payments ahead of schedule to support the institution’s operations.
Nxumalo noted that the university’s recurring budgetary struggles had been identified as a pressing concern by the Ministry.
UNESWA had been requested to submit revised cash flow forecasts, incorporating feedback from the Ministry to ensure sustainability through the remainder of the financial year.
The minister emphasized that the government’s interventions were designed to safeguard the institution’s ability to fulfil its obligations while also holding UNESWA accountable for its financial planning and management.
