Mbabane – Financial mismanagement and leadership challenges are major issues identified among four key management flaws at UNESWA.
According to a preliminary report by a Task Team appointed under Legal Notice No. 129 of 2024, the government-commissioned committee strongly recommends a complete overhaul of governance and financial management at UNESWA. It concludes that without structural reforms, accountability measures, and sustainable revenue streams, the university will continue to deteriorate, jeopardizing its role in national development.
UNESWA has been experiencing deep governance, financial, and operational challenges, leading to concerns over its sustainability. The Task Team was mandated to investigate these issues and propose urgent solutions. The report highlights systemic mismanagement, financial instability, and leadership failures, severely impacting UNESWA’s ability to fulfil its role in national development.
The Key Findings
A. Governance and Leadership Issues
• Ineffective Leadership: The leadership structure, particularly the University Council, lacks accountability, with a history of unilateral decision-making and interference in operational matters.
• Oversized and Inefficient Council: The Council has 24 members, exceeding best practice recommendations, leading to inefficiencies and high operational costs.
• Conflicts of Interest: Senior officials have been implicated in nepotism, unauthorized allowances, and irregular procurement.
• Outdated Policies & Resistance to Reform: Governance policies are obsolete, leading to weak oversight and lack of strategic vision.
B. Financial Mismanagement
• Unsustainable Wage Bill: Over 90 per cent of UNESWA’s budget is spent on salaries, far above the 65 per cent global benchmark for higher education institutions.
• Failure to Remit Statutory Payments: UNESWA has a history of non- payment of pensions, taxes, and medical aid contributions, despite past E1 billion in government debt cancellations.
• Recurring Audit Failures: Yearly audit reports highlight financial mismanagement, unauthorized expenses, and weak financial controls.
• Ineffective Third-Stream Income Generation: Business ventures like Chakaza Holdings have been financial drains instead of revenue generators, with evidence of fraudulent contracts.
C. Academic Performance Issues
• Mismatch with Labour Market Needs: UNESWA’s academic programs are outdated and not aligned with industry demands, leading to high graduate unemployment.
• Declining Research Output: Heavy teaching workloads prevent academic staff from engaging in research, reducing the university’s competitiveness.
• Barriers to E-Learning: Poor ICT infrastructure and resistance to digital education prevent UNESWA from modernizing its education delivery.
D. Student & Staff Welfare Challenges
• Delays in Allowances: Late scholarship disbursements have caused student unrest and suicides due to financial distress.
• Inadequate Housing & Healthcare: Overcrowded hostels, limited medical facilities, and deteriorating campus infrastructure negatively impact student welfare.
• Unpaid Salaries & Poor Working Conditions: Staff experience delayed salaries, high workloads, and lack of professional development, leading to low morale and burnout.
Recommendations
Short-Term Actions
1. Immediate Forensic Audit – Investigate fraud, irregular spending, and financial mismanagement.
2. Reform the Governance Structure – Reduce the Council size, enforce performance-based leadership, and eliminate conflicts of interest.
3. Short-Term Financial Takeover – Appoint an independent financial team to stabilize budgeting, expenditure control, and compliance.
4. Turnaround Expert Team for Senior Management – Hire independent professionals to implement reforms.
5. Revenue Diversification Strategy – Relaunch income-generating projects, ensuring competent management.
6. Debt Liquidation Plan – Address crippling liabilities to restore financial stability.
7. Revised Scholarship Model – Shift to a value-based system covering housing, meals, and study materials rather than cash allowances.
8. Cost Reduction Measures – Implement strict financial controls, stop excessive leave payouts, and optimize staff structure.
Critical Key Takeaways
• UNESWA is in a financial and governance crisis due to weak leadership, outdated policies, and a culture of impunity.
• Without urgent reforms, the university risks insolvency, making government subventions unsustainable.
• A forensic audit is critical to expose and prosecute financial misconduct.
• Governance reform must prioritize transparency, accountability, and efficiency.
• Modernization of academic programs and financial sustainability strategies is essential for UNESWA’s long-term survival.
Discussion about this post