The #FeesMustFall campaign continue to gain momentum as we saw more institutions of higher learning protesting agains what they call ‘injustices in higher learning.’
A report by BusinessTech shows that universities in South Africa are not as broke as they claim to be. The report shows that universities continue to make money while students are locked out as they contest fees hikes that are way above inflation.
Government’s allocation for higher education is around R30 billion which represents 0,72 percent of the country’s GDP. NSFAS received more than R9.5 billion of that R30 billion this year alone. The remaining R21 billion goes to universities and they divide it among themselves.
This year alone Wits university received R1,148 billion, UCT got R1,074 billion and Stellenbosch university received R1,177 billion. This is just government’s portion. Universities will still generate more money from the following:
Tuition and other fees
Private gifts and donations
Residence and catering services
Income from research and other contracts
No. of students
Total Profit/(Loss) (Rmillions)
University of Cape Town
University of Johannesburg
University of KwaZulu Natal
University of Witwatersrand
Wits 2014 annual report shows that the university generated a whopping R1,5 billion from tuition fees. There are other sources of revenue that are reflected in it annual report resulting in a surplus that goes to reserves.
Questions have been asked as to why is it that the Wits Board of Governors has millionaires including a billionaire caught of Totoya SA owner, Albert Wessels who made money during apartheid regime in South Africa. Discovery Health founder, Adrian Gore also sits in the board although it is not clear as to what his interest in higher education is.
University board of directors are responsible for fees hikes as they oversee institutions’ financial and corporate governance management. It is believed that Mr Tokyo Sexwale is also a member of Wits board of governors.
Yesterday we saw on social media, allegations that universities redirect their investments and reserves towards foundations setup by board members which in the end benefits private families of these board members majority of whom are white. Some raised serious concerns about the fact that almost all boards members have a background as CEOs of companies that have milked billions of rands from our country’s economy. These are not even professor or doctors by qualifications yet they are trusted with the responsibility to manage institutions of higher learning that must produce academics.
The BusinessTech report also revealed what VC/Principals earn on annual bases.