The status of universities under
administration
Briefing to the Select Committee on
Education and Recreation
Department of Higher Education and Training
14 August 2013
1
University of Zululand
Background
 The UniZulu appointed a new Vice Chancellor in 2009.
She found a Council and institution riddled with
corruption and reported the situation to the Minister
 The Minister appointed Prof Hugh Africa as an
Independent Assessor (IA) to investigate
 The IA report revealed serious weaknesses in
governance and management of the University and
gross irregularities in financial management,
procurement practices and chaotic registration and
admission procedures
 The IA recommended that the Council be dissolved, an
Administrator appointed, but that the VC remain in office
2
University of Zululand
Appointment of an administrator
 The Minister appointed Professor Chris De Beer as
Administrator at UniZulu on 18 April 2011. His term of
office will expire on 17 October 2013
Terms of reference of the administrator
 To take over the authority of Council and appoint a new
Council, establish Council sub-committees and draft a
new Statute
 To initiate processes to restore proper governance and
administration
 Conduct forensic audits as recommend by the IA and
take appropriate action against individuals implicated if
identified
3
University of Zululand
Progress
 Office of the Registrar have been restructured and
protocols revised to meet challenges of registration and
certificate irregularities
 Policies, procedures and delegation frameworks to
facilitate staff recruitment have been developed and
implemented in consultation with Senate and Institutional
Forum
 The Code of Ethics has been revised and employees
have to declare interests (to mitigate the culture of fraud
and corruption reported by the IA)
 Extensive forensic investigations were undertaken which
identified corrupt practices and specific individuals
4
University of Zululand
Progress …
 Appropriate disciplinary action taken against members of
staff and students found guilty, including dismissals
 An Institutional Improvement Plan and implementation
strategy developed and implemented
 A New Statute approved by the Minister and published
 Institutional Rules, Policies, Procedures and Protocol
associated with governance responsibilities developed,
approved and are being implemented
 The process to appoint a new Council has commenced
 Recruitment of suitably qualified candidates for senior
management positions is underway; key appointments
have been made
5
Tshwane University of Technology
Background
 On going instability and unrest at TUT
 Minister
appointed an Independent Assessor (IA),
Dr Vincent Maphai to investigate the root causes of the
ongoing strikes and discontent
 The IA found serious problems in the governance and
management of the university
 The Council was requested to address key issues
highlighted in the IA report
 The Council failed to provide the department with
evidence that these were being dealt with and instead
went ahead and appointed a person with a fraudulent
qualification as Vice Chancellor (VC)
6
Tshwane University of Technology
Appointment of an administrator
 Minister appointed Prof Themba Mosia on 15 August 2011.
Term of office expired on 17 November 2012. Final report
submitted on 27 November 2012
Terms of reference of the Administrator
 Assume the authority of Council and the functions of ViceChancellor
 Identify and restore proper governance and administration
 Ensure a functional Council including a review and
establishment of necessary sub-committees and drafting of
a new Statute
 Initiate and conclude key recommendations of the IA
report, specifically the appointment of the Vice-Chancellor
7
Tshwane University of Technology
Progress
 Key executive positions were filled, appointment of
Prof N Ogude as Vice-Chancellor on 1 August 2012
 Issue of poor governance and absence of ethics was
addressed with all members of executive management,
facilitated by the Ethics Institute of South Africa
 Procurement and financial policies were reviewed and
implemented
 New Statute developed and approved by Minister on
14 June 2012
 The new Council took up office on 1 December 2012
 The Student Representative Council was elected with a
new Constitution
 TUT is stable and progressing well
8
Walter Sisulu University
Background
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WSU was in financial crisis unable to pay its salaries.
Council requested assistance from the Minister
On 5 August 2011 the Minister appointed Prof Daniel
Ncayiyana as an Independent Assessor (IA)
The IA reported an institution in crisis with the allencompassing collapse of systems, governance and
financial management. The weak administrative systems
had a crippling effect on the academic enterprise
The IA recommended an Administrator be appointed to
take over the governance and management of the
institution
9
Walter Sisulu University
Appointment of an administrator
 The Minister appointed Prof Lourence Van Staden as
Administrator for WSU on 27 October 2011
Terms of Reference of the administrator
 Take over Council and management and steer the
University back to operational and financial sustainability
 Assess the impact of the merger
 Implement initiatives to restore governance, operations
and viable systems and processes in finance, human
resources, governance, information technology,
academic enterprise and student governance and
administration
10
Walter Sisulu University
Terms of Reference …
 Introduce short-term and long-term measures to reduce
the institution’s bank overdrafts
 Initiate appointment of a new Council, establishment of
necessary Council sub-committees and drafting of a new
statute for the University
 Increase the different revenue streams of the university,
including government grants, student fees and other
possible revenue sources
 Review and improve the academic integrity and
relevance of the university’s programmes and
qualifications and if appropriate design a new academic
structure
11
Walter Sisulu University
Progress
 Financial stability has been achieved in the short term
with all creditors paid, staff salaries secured, backlogs
cleared and break-even budget tabled for 2013
 A consolidated PQM has been approved by the DHET
 A report detailing the financial challenges pre-and postmerger was submitted to the Department
 WSU has no bank overdrafts. This goal was achieved
during the first year of the Administration period
 Numerous forensic audits have been conducted and
concluded with some resulting in disciplinary action
taken and dismissals effected
12
Walter Sisulu University
Progress …
 A turnaround strategy, Turnaround Framework and
Institutional Strategic Goals and Objectives (2012/13 –
2013/14 , submitted to Department
 Feasibility study submitted in April 2013 motivating for a
R3.150 million injection to fund the turnaround
framework
 A new University Statute has been developed and
submitted to the Minister for approval. This will pave the
way for a new Council to be established
 A governance model suitable for a comprehensive, multicampus university has been conceptualised and is
embedded in the proposed new Statute
13
Walter Sisulu University
Progress …
 Academic programme is still a work in progress. A
consolidated PQM has been approved by Department
 Guidelines on the harmonisation of conditions of service
are being finalised with labour unions
 The first legitimate SRC elections in two years were
successfully held in 2012 following the implementation of
a new SRC Constitution
 Administration has been supported by the Department
and significant funds have already been provided
 Administrator faces major challenges on a daily basis. A
change in the institutional culture is required for long
term sustainability
14
Vaal University of Technology
Background
 Persistent problems relating to opposing factions within
the university, administration, governance and
management were identified
 Allegations and counter allegations about the Council
and Management were reported to the Department
 The Minister appointed Adv Muzi Shikhakhane as
Independent Assessor (IA) on 10 February 2012 to
investigate and recommend appropriate action
 The IA found that the Council has failed and was unable
to provide strategic leadership. The Statute was not
effective and must be replaced to ensure that the
Council is properly constituted to lead a University
15
Vaal University of Technology
Appointment of an Administrator
 The Minister appointed Prof Patrick Fitzgerald as
Administrator on 17 July 2012
Terms of reference of the Administrator
 Take over the authority of Council, appoint a new
Council, establish Council sub-committees and draft a
new Statute
 Identify/initiate processes to restore proper governance
and administration
 Conduct forensic audits as recommended by the IA
recommendations and to take appropriate action against
individuals implicated if identified
16
Vaal University of Technology
Terms of reference …
 Conduct a detailed analysis on human resource policies
and identify regulations, practices to improve
employment relations
 Establish a full complement of executive managers,
including a review of the contract of the VC
 Initiate an independent forensic audit to investigate
procurement, management of student residences,
tenders, including the appointment of MPL (Ltd)
 Review the terms of reference of the Finance and Audit
Committee to assess strength of risk management and
internal control
17
Vaal University of Technology
Progress
 University is well-managed financially and financial
situation is very good
 Clean audits continue to be achieved
 Requisite risk registers have been developed
 Restructuring and change management process in
respect of HR and Employment Relations (ER)
implemented and have resulted in improved HR and ER
practice and culture
 Forensic audits were conducted and revealed no major
abuses in procurement and tender processes. However,
a review of procurement policies and procedures has
been done and improvements made
18
Vaal University of Technology
Progress
 VC found guilty of misconduct for failing to adhere to
proper procurement processes; under final warning
following disciplinary hearing
 A new Statute was promulgated in April 2013 and a new
Council appointed. Council convened on 19 July 2013
 Administrator reviewed the contract of the VC. The
process for appointing a new VC, whose term comes to
an end soon, will be carried out by the new Council
 A review and re-organisation of executive structure and
portfolio was initiated due to expansion in terms of
student numbers and programmes offered
 The term of office of the Administrator came to an end
on 31 July 2013
19
Central University of Technology
Background
 Allegations of corruption and abuse of power at CUT were
received by the Minister in January 2011
 The Council of CUT was requested to investigate and to
report back to the Minister
 Council repeatedly failed to provide a response and a
report while on-going allegations of abuse continued
 On 24 February 2012 the Minister appointed Prof Julian
Smith as an Independent Assessor (IA)
 The IA report was published on the 11 May 2012,
recommending that the Minister appoint an Administrator
to take over the governance of the institution
20
Central University of Technology
Appointment of an Administrator
 The Minister considered the findings of the IA together
with the formal response on the IA report from the CUT
Council which called for the Minister to reject the findings
of the IA and made a decision to appoint an
Administrator at CUT
 The Minister appointed Professor Stanley Ridge as
Administrator on 20 June, 2012
 The CUT locked the Administrator out when he
attempted to take up office, and CUT indicated they
would contest the appointment in court
 The Minister indicated he would also file a case
21
Central University of Technology
Legal action
 On 4 July the Minister issued a legal application and
sought relief from the high court that:
 his decision to appoint an Administrator was lawful
and valid
 that once the Administrator was appointed, the
Council had no legal standing and ceased to hold any
authority, powers functions and duties associated with
the university
 that the CUT acted unlawfully by disallowing the
Administrator to assume and discharge his duties
22
Central University of Technology
Legal action …
 On the same day, i.e. 4 July 2012, the CUT issued their
application
 to review and set aside proceedings of the Minister’s
decision to place CUT under administration, in terms
of section 41A of the Higher Education and Training
Act 101 of 1997
 The two cases were heard simultaneously on
19 and 20 July 2012, by agreement between the Senior
Councils of CUT and the Minister
 Judge Daffau made his judgement on 13 August 2012
23
Central University of Technology
The judgement
 The Minister had the right to appoint an administrator to
take over the functions of Council and management
 In doing so, the Minister did not have the right to dissolve
the Council, and therefore Council had the right to bring
a case against the Minister
 The Minister acted fairly in terms of the Promotion of
Administrative Justice Act (PAJA)
 The Minister did not sufficiently apply his mind to all the
facts, specifically the information provided by the Council
in response to the IA Report, and therefore did not act
Lawfully in appointing the Administrator
24
Central University of Technology
The current situation
 The Minister was granted leave to appeal by the
Supreme Court of Appeal on 21 September 2012
 Following legal advice received from Senior Counsel for
the Department, the Minister has withdrawn his appeal
against the judgment in light of the enactment of the
Higher Education and Training Laws Amendment Act,
No. 23 of 2012
 None of the matters which gave rise to the Minister’s
decision to appoint the Administrator have been resolved
 The Minister requested a copy of the CUTs independent
investigation and will respond in due course
25
Thank You
26