For information and noting of:
Hon Dr BE Nzimande, MP
Minister of Higher Education and Training
Prepared by:
Professor LR van Staden
Administrator of Walter Sisulu University
29 November 2012
SECOND
REPORT
OF
THE
ADMINISTRATOR
OF
WALTER
SISULU
UNIVERSITY TO THE MINISTER OF HIGHER EDUCATION AND TRAINING
1.
PURPOSE OF THE REPORT
The first report of the Administrator of Walter Sisulu University to the
Minister of Higher Education and Training was submitted on 12 April 2012.
That report covered the first six months of the Administrator’s period at
the Walter Sisulu University. The Minister’s response and feedback of 7
September 2012 on that first report was helpful and useful for us in
preparing the second report. This second report will seek to cover the
period from May to November 2012. The two reports will then have
accounted for the first year of the Administrator’s tenure at the Walter
Sisulu University (WSU).
2.
BACKGROUND TO THE REPORT
Whilst the first six months of our administration at the WSU represented
mainly a learning and planning phase, with the Administrator and his Task
Team meeting regularly on their own, this latter period was focused more
on an integrated management and implementation of turnaround
initiatives for the institution. On the general stability of the institution, the
student protests described in our first report represented the only
disruptions the institution experienced in the first term. The labour strike,
described below, challenged our stability at the beginning of the second
term of the institution.
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We are however strongly encouraged by the significant amount of
progress made during this second term. The common understanding and
good working relations between the Administrator’s team and institutional
stakeholders account for much of the progress achieved this term. In this
regard, we recognize with great appreciation the cooperation and support
of management, labour and student leadership. Whilst this report will
focus mainly on the progress with regard to implementation of the
Administrator’s terms of reference, it will also provide some highlights on
the general developments within the institution.
3.
INTRODUCTION
a) Graduation ceremonies & mid-year examinations: The institutional
graduation ceremonies represent some of the major activities of the
institution during the second quarter and the second term of the
University calendar. As reported in our previous report, our first term
of reference which is to take over the authority of Council of
Walter Sisulu University was effectively done and concluded in
November 2011. This year’s graduation ceremonies were the first
ceremonies conducted and held during the Administrator’s tenure.
These ceremonies held in May and September were well organised and
successfully delivered to the great delight and joy of all graduands and
their parents. The processes we had established to address issues of
academic exclusions through a Senex established University Appeals
Committee and interventions made to deal with student concerns
regarding special examinations contributed in no small measure to the
success and stability of the 2012 graduation ceremonies. The
dedication and commitment of our staff in all relevant departments
was commendable. The support and cooperation of student leadership
with all arrangements and processes contributed to the overall success.
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The role and support of the University Chancellor, Dr B Bam, for these
ceremonies is acknowledged with gratitude and appreciation. We
sincerely thank Dr Bam for kindly accepting our request and invitation
to serve another term as Chancellor of Walter Sisulu University.
We are also pleased that lectures and mid-year examinations
proceeded smoothly and successfully. The institution is gradually
returning to operational efficiency with the restoration of the culture of
teaching and learning.
b) The first steps in the taking over of management of the
University, as part of the Administrator’s terms of reference, were
reported before. Three former Executive Managers of the institution,
the Deputy Vice-Chancellors and Registrar, have since left the employ
of the University (Annexures 1-3). Three other members of senior
management have been placed on suspension pending the outcome of
their disciplinary hearings. Acting arrangements in these offices have
been made to ensure uninterrupted delivery and management of
institutional operations. Some of these developments follow on our
attempts to institute appropriate actions in implementation of
some of the outcomes of the forensic audits of the institution
conducted as part of our terms of reference.
We are also pleased to report that we have since established an
Interim Management Committee which has integrated both internal
members
of
University
management
and
members
of
the
Administrator’s team (Annexures 4-5). Scheduled regular meetings of
the Interim Management Committee ensure an accountable and
transparent efficient management of the
institution.
This has
significantly contributed towards improvement of working relations and
forging of a spirit of mutual understanding and cooperation with
internal stakeholders.
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To further strengthen our management capacity of the institution we
assigned Professor K Mfenyana to assist and support us in the Office of
the Vice-Chancellor.
c) SAICA LAUNCH AT WSU
The successful launch of the South African Institute of Chartered
Accountants (SAICA) programme in partnership with the University of
Cape Town (UCT), the Department of Higher Education and Training
(DHET) to rebuild the capacity of WSU by working towards reaccrediting WSU’s BCom (Accountancy) programme was a significant
milestone for the institution. This programme, implemented at the
beginning of the 2012 academic year, was launched on 4 October 2012
at Mthatha. The programme is proceeding well with the dedication and
commitment of the first intake of 100 students, staff and SAICA. In
2013 the programme intends to attract the second cohort of 100
students. The institution is fully committed in supporting this
programme to make it a success.
We highly appreciate that the Honourable Minister, together with
senior members of the Department, attended to officially launch this
programme at our institution. On behalf of WSU, we are grateful to
SAICA, in partnership with UCT, for introducing this project at our
institution which, as part of SAICA’s capacity building projects at some
of the country’s historically disadvantaged universities, will assist in
addressing the country’s local, regional, national and international
human capital needs, given the dire shortage of CAs(SA) in South
Africa.
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d) HEQC IMROVEMENT PLAN
Walter Sisulu University received her first Higher Education Quality
Committee Institutional Audit on 4-8 April 2011. The HEQC Audit
Report, with 30 recommendations, was received by the institution in
September 2011. WSU was then expected to prepare and submit an
Improvement Plan to the HEQC on those recommendations. The
institution was visited by the CHE on 24 July 2012 to assess and
understand our progress on the development of the Improvement
Plan. Our Audit Improvement Plan, which we had linked to the
University’s Turnaround Framework, was then submitted to the HEQC
on 6 September 2012. On 19 November 2012 a CHE delegation visited
the institution to provide feedback from the Institutional Audits
Committee of the HEQC on the WSU Audit Improvement Plan. We are
pleased with this feedback as it acknowledged and appreciated the
progress
and
comprehensive
work
done
with
regard
to
this
Improvement Plan. We have been particularly encouraged by the CHE
advice and confirmation that our Improvement Plan has effectively and
adequately addressed a number of the HEQC recommendations. The
CHE has however expressed the following two major concerns with
respect to the Improvement Plan:

Many of the proposed improvements are contingent on
receiving adequate funding. WSU needs to confirm if such
funding is available;

The institution does not yet have a substantive executive
team to provide leadership and management for effective
implementation of the Improvement Plan.
These two concerns will be receiving our priority consideration and
attention.
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4.
THE MANAGEMENT ISSUE
We have made significant progress in addressing our terms of reference.
Our focus since the submission of our first report has been on the
development of the institution turnaround plan. Much detail on the work
regarding strategies of addressing of the terms of reference is provided in
the turnaround plan which will soon be submitted to the Department. The
progress on the development of this plan and, more importantly, the
process for its development is provided below. We will provide an account
on the progress made in some of the key areas identified and listed in the
terms of reference.
4.1
Student Governance
The process of reviewing the SRC Constitution initiated and
undertaken in the first term was concluded and finalized. A
revised WSU SRC Constitution was approved on 21 May 2012.
The interim student structures that we had established after the
suspension of the SRC Constitution in December 2011 were all
subsequently dissolved (Annexure 6). SRC elections were
successfully held on 24 May 2012 in three of our campuses. The
one outstanding campus also later held its own elections. We
are pleased that WSU has now a duly elected and constituted
SRC according to the approved SRC Constitution. We regard this
as a significant achievement in our attempt to ensure proper
functioning of student governance and student affairs
administration at the Walter Sisulu University.
It is important to note that through these elections, WSU has its
first female SRC president, Ms L Sikhinzi. We congratulate both
Ms Sikhinzi and all other members of the SRC for their election
into the highest office of student governance. We commend the
staff in the Department of Student Affairs and the leadership of
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various student political structures for their commitment to
ensuring that we had successful and peaceful SRC elections in
2012.
The process of auditing and analysing the student affairs
department was also concluded and finalized. We now have a
recommended model of student governance for WSU which will
receive thorough consideration within the appropriate structures
of the institution. As the first step in this process, the post for a
substantive Executive Director Student Affairs was advertised.
We will soon be completing the appointment of this Executive
Director who will ensure efficient and proper functioning student
administration with viable systems and processes.
4.2
Human Resources

The focus of Human Resources has been mainly on the salary
negotiations for 2012. Following on a series of engagements
and negotiations, it became apparent that the institution could
not afford to meet the 2012 salary demands. This dispute
unfortunately resulted in a three week-long labour strike from 6
– 27 August 2012. We regret the disruptions to the University
operations during this period. The strike was finally resolved
through an agreement signed with labour on 27 August 2012.
The University had further signed a separate agreement with
labour on post-strike arrangements to ensure full recovery of
the valuable lost learning and teaching time. Both parties had
agreed and committed themselves to the development and
implementation of a catch-up plan in the best interest of
students and for the quality of the academic programmes
(Annexures 7 & 8).
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We wish to sincerely thank the Department for its contribution
in facilitating and providing assistance in resolving the impasse
during the strike. We further appreciate the commitment of both
our management and labour members of the negotiating team
to address and resolve the issues. The understanding and
patience of our students during the course of negotiations and
addressing of this dispute is much appreciated.

As part of addressing some of the HR challenges, special
attention is being given to some unresolved and long
outstanding harmonization issues. It is our considered view that
the success of the turnaround interventions will, to a large
extend, depend on our resolution of these outstanding
harmonization legacy issues. The process of addressing these
issues is currently being mapped out. We have committed
ourselves to accord this matter our priority and urgent attention
and we will keep the Department informed and updated of our
progress and challenges on this critical area.
The matter of
recognition agreements with organized labour is at an advanced
stage and we envisage its conclusion soon.

The HR focus has also been on the processes relating to the
severance of ties with the institution by some former members
of executive management. As reported above, the former
Registrar and Deputy Vice-Chancellors have left the employment
of the institution. HR has also been driving and managing the
suspensions
and
disciplinary
hearing
processes
currently
underway of some senior members of management.

We are pleased to report that the process of filling of three
critical senior posts will soon be finalized. The posts of Executive
Directors for Finance, Human Resources and Student Affairs
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were advertised and the process for appointments is underway
and it is envisaged to be concluded as soon as possible. This will
bring about much needed stability in the management of these
critical portfolios. We are also concerned about the untenable
situation of many vacant senior positions with acting/ interim
incumbents resulting from some of the developments explained
above. The process of addressing and rectifying this situation is
receiving our very urgent consideration. Our next report will
provide a full account on how this matter has progressed.
4.3
Finance

The 2011 annual audit was completed and submitted to the
Department. The 2010 audit report was qualified on six
counts with two reportable irregularities (worse than
qualifications) and two negative emphases of matter
statements. In the preparation and conduct of the 2011
audit it was found that none of the figures in the 2010
financials could be properly verified. As a consequence, the
2011 figures in many cases had to be re-created and very
significant adjusting entries (significant in terms of value and
number of entries) had to be processed to correct the
records. In correcting the 2011 information, prior year errors
were
discovered
which
necessitated
recalculating
and
correcting the data for the last three years.

A comprehensive asset verification exercise was conducted
for this audit and many assets were identified which had
previously not been recorded on the asset register. These
assets were brought into the books in the current year
although they may have actually been purchased in another
period. It must be emphasised that the asset qualification
last year was for the reason that the asset register was
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totally out of date and incorrect. The very serious
qualification and reportable irregularity in 2010 related to the
incorrect use of ring-fenced monies. WSU had misused funds
which should have been ring-fenced to cover the staff
salaries. Although it was impossible for the auditors to
quantify this misuse, it appears as if a total of R384 million
may have been misused in this way. Every attempt will be
made so that the accounting for 2012 is brought up to the
same standard as for the 2011 audit, that all reconciliations
are brought up to date and maintained in that way. The
“cleaning up” of the chart of accounts will ensure that the
books represent one WSU and not 3 heritage institutions.
The external members of the finance team are closely
working with the internal staff to capacitate them to be
ready for the 2012 audit.

A total of six forensic audit reports were concluded the
findings of which are being addressed and many disciplinary
processes have been and will continue to be implemented.
Significant
progress
was
made
on
compilation
and
submission of outstanding VAT returns. WSU has now
finalised all returns up to and including 2009 and these have
been assessed.

The significant challenges on the management of the
student financial aid are being addressed. These challenges
were particularly acute and rife in the areas of student
credits and student allowances for meals and books.
Initiatives and steps to improve procurement processes have
been instituted. Measures to ensure that the procurement
process is conducted on the primary accounting system are
underway.
Page 10 of 17

The process of building valuations has been completed and
we now have a comprehensive listing of all buildings, both
owned and leased. This has been forwarded to the insurers
to ensure that WSU is adequately covered in case of
catastrophic loss. This report will now be consolidated with
other documents including title deed, ownership and
encumbrance information.
4.4
Academic enterprise, HEMIS and ICT
A thorough ICT efficiency audit was carried out by an
independent, external auditor. The biggest threat identified was
WSU’s vulnerability with regard to back-ups and business
continuity. The overloaded network connectivity was identified
as responsible for very slow internet traffic. The need to
upgrade ITS v13 to Integrator 2 was identified. Errors that were
identified in the academic structure have been corrected for
2011 data. Interventions have been made to ensure accuracy
and quality of data and codes. The proper use of the available
Management Information Systems will significantly improve the
accuracy and integrity of the institutional data. Arrangements
for use of ITS Time Tabling system are being made and these
plans will be assisted by the upgrade to ITS Integrator 2.
The appointment of Dr N Coetzee as a consultant responsible
for ICT will improve and strengthen our capacity to accelerate
our progress on addressing ICT challenges. Further details
about plans on academic enterprise and ICT improvement are
provided in our Turnaround Plan referred to above.
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4.5
Institutional Governance
The Administrator, in terms of his terms of reference, is required
to develop a workable governance model for a multicampus university. In pursuit of this objective, a new
statute for the University must be drafted and submitted
to the Minister of Higher Education and Training. The
process to develop a divisional, workable management and
governance model appropriate for WSU is underway. Professor
C van der Walt has been appointed as a consultant member of
the Administrator’s team to drive and coordinate this process
(Annexure 9).
4.6
Infrastructure and Efficiency Funding
We had given our urgent attention to the invitation from the
Department for the institutions of higher education to make
proposals for the infrastructure and efficiency funding for
2012/13 to 2014/15. In response to this invitation, we were able
to
develop
and
submit
a
comprehensive
infrastructure
application for this funding in March 2012. Our funding
proposal, amounting to R1.7billion, was also informed by the
need to attend to the critical areas identified by the HEQC Audit
Report referred to above.
The Improvement Plan we had developed and submitted to the
HEQC included commitments to address the infrastructure
challenges which featured prominently in the HEQC Audit
recommendations. Some of our projects within the 8 pillar
projects of our Turnaround Framework had also embedded our
intentions
to
address
these
infrastructure
gaps
and
inadequacies.
Page 12 of 17
The Minister’s approval of an allocation for our infrastructure
funding proposal to the amount of R421, 851 million represents
a huge and significant investment to Walter Sisulu University.
Together with the earlier approval of our special request for an
amount of R64.3 million for urgent infrastructure development,
this allocation will strongly support our Turnaround and Audit
Improvement Plans. On behalf of WSU, we sincerely express our
profound appreciation and gratitude to the Minister and his
Department for this huge support.
4.7
Risk Management Workshop
The success of the intervention plan for WSU depends on a
proper identification and successful management of risks that
can derail and hinder implementation of the turnaround
intiatives. In an attempt to avoid and mitigate this possibility, a
Risk Management workshop was organised for the Interim
Management Committee on 7 November 2012. Facilitated by
Professor PDF Kok, the workshop identified the risks that are
attendant to the
9
strategic
goals
of the
Turnaround
Framework.
A draft risk register, with risk owners, has been developed and
the process of assessing these risks and working out of
strategies to mitigate them is underway. This process will
further be cascaded down to other levels of the institution. We
hope to finalise the development of the risk register with
necessary mitigation strategies within the first quarter of 2013.
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4.8
Development of the Turnaround Plan
The process of developing a Turnaround Plan for Walter Sisulu
University has made significant strides. We had already provided
the Minister with the Turnaround Framework document which
formed the basis for the development of the Plan. The Minister’s
positive feedback on the Turnaround Framework has strongly
encouraged our efforts and initiatives. As part of the process of
building on and taking of the Framework document forward, the
institution held its first stakeholders’ Summit on 21-22 May 2012
to consider and map a process for the collective development of
the Turnaround Plan. An all-inclusive Task Team to drive and
coordinate this process was established. A second institutional
Summit, under the theme, Working together to rebuild
Walter Sisulu University, was held on 26-28 October 2012.
Our turnaround initiatives for WSU were strongly encouraged by
the messages of support delivered at the start of this Summit by
all institution stakeholders.
Informed by a common understanding of WSU challenges and
of a desired future, this Summit committed itself to developing a
consolidated Turnaround Plan. Based on the 8 pillar projects of
the turnaround framework, which are derived from the
Administrator’s terms of reference, the Summit constituted
Commissions, inclusive of all stakeholder representatives, to
identify and develop plans and activities for each of their
projects as part of the Turnaround Plan. These Commissions
have worked hard to consolidate and refine their plans which
are now ready for final consideration and approval by the
Plenary of the Summit scheduled to meet on Friday, 30
November 2012.
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The Turnaround Plan is set to be presented to the Interim
Management Committee meeting of 5 December 2012 for final
approval before its submission to the Minister soon thereafter.
We have also established a Turnaround Forum which, as a
representative body of all stakeholders, will be responsible for
ensuring a collective implementation and monitoring of the
institution Turnaround Plan (Annexure 10). Through this
initiative, we have created a platform to ensure that the Summit
theme of working together to rebuild Walter Sisulu University is
demonstrated and realized. We are confident that through the
process
briefly
outlined
above,
the
development
and
implementation of WSU’s Turnaround Plan will be a collective
effort and responsibility of all who will be affected by this Plan.
5.
CONCLUSION
The Administrator has now completed his first 12 months at the Walter
Sisulu University. The two reports that have been submitted to the
Minister have attempted to capture and reflect not only the deep-seated
and complex challenges of WSU, but the possibilities and achievements
that have been accomplished within this first year. It has been a fairly long
journey, with a variety of experiences of twists and turns. But as we
conclude this first year we remain strongly encouraged and determined to
deliver on our mandate of turning Walter Sisulu University around. The
improved working relations, mutual understanding and cooperation
between
the
Administrator’s
team
members,
management
and
stakeholders bodes well for the success of the turnaround project.
The establishment of the Interim Management Committee and the
Turnaround Forum are significant steps to ensure involvement and
participation of internal stakeholders in our management and turnaround
Page 15 of 17
of Walter Sisulu University. The commitment and involvement of all
stakeholders in the development of a Turnaround Plan as described above
will, if sustained, ensure that the turnaround process is supported and
owned by all.
As we conclude our first 12 months, we are particularly encouraged by the
demonstration of the unwavering support and commitment of the Minister
and the Department of Higher Education and Training to the success of
the intervention at WSU.
6.
INTERACTIONS WITH OTHER STAKEHOLDERS
We are acutely aware of the need and importance of maintaining ongoing
interactions and engagements with various stakeholders. This remains a
key and cardinal principle of our turnaround strategy for WSU. Our
scheduled
meetings
of
Interim
Management
Committee,
Senior
Management Forum, Labour-Management and meetings with ISRC offer
us platforms and opportunities of ensuring that the process of intervention
and turnaround is developed and implemented with the understanding
and support of institutional stakeholders. The Summit Planning Task Team
composed of representatives of all stakeholders ensured a collective
involvement and participation in the development of the Turnaround Plan.
The
recently
established
Turnaround
Forum
will
further
afford
representatives of management, labour and students another opportunity
to be directly involved and engaged in implementation of the Turnaround
Plan. We will be visiting and addressing all members of the University
community across all campuses early in 2013 on the key goals and
priorities of the Turnaround Plan which will soon be finalized as explained
above.
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Engagements with external stakeholders have also been held on various
matters and issues relating to the developments within the institution. We
have held successful engagements with the Portfolio Committee on Higher
Education and Training, Provincial Committee of NEHAWU and with
Executive
Mayor
of
the
KSD
Municipality.
We
appreciate
these
engagements as they contribute towards improving and strengthening of
our relations and partnerships with representatives of our communities. It
is through these partnerships that the stability and development of our
institution can be promoted.
SIGNATORY
Professor LR van Staden
WSU ADMINISTRATOR
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