CAMPUSES & CENTRES

FINANCESMr. M.E. Dlamini - BursarThe financial year 2011/12 has been a difficult periodfor the University Council. It has been characterisedby unprecedented budget constraints and cashflow challenges resulting in the University failing to pay itsdebtors, in particular contractors and remitting tax to theSwaziland Revenue Authority as per Income Tax laws.During the last three years the subvention received by theUniversity from the Swaziland Government has remainedthe same, yet the financial needs of the University havebeen increasing. This has resulted in a serious liquiditycrisis particularly during the 2011/2012 financial year.Traditionally, Government Subvention has been releasedquarterly up until December 2010. From January 2011,the Subvention started being released monthly and in somecases much later than expected. Honouring of staff monthlycontractual obligations became a serious challenge therebycompelling the University to seek short-term bank financesto honour monthly staff salaries and wages.There were many contributing factors to the dire strain theUniversity has found itself in. A few of them are highlightedbelow:Firstly, the University requested a subvention of E419015 000. However, an amount of E241 585 000 wasallocated.Secondly, the requested subvention was based on theassumption that the University was going to admit1 300 students into first year, the historical figure.Unfortunately, the Swaziland Government was onlyable to sponsor 505 students. Clearly, the projectedtuition income was adversely affected.Thirdly, over 200 students sponsored by the SwazilandGovernment were registered, issued with text books,and taught on the basis of a list generated and signed forby the responsible Ministry indicating Government’sfinancial commitment to these students. To date, theUniversity has not been paid the money for the saidstudents because of certain problems Government hasdiscovered with some of them.Fourthly, an amount of money for capital projectswas approved and allocated to the University.Unfortunately, because of the liquidity crisis affectingGovernment, this money, to date, has never beenreleased to the University. On the other hand, theUniversity contracted some contractors to executethe capital projects. The contractors have demandedto be paid but because of the delays in receiving themoney for capital projects from Government, theUniversity had to use some of its meagre financialresources to salvage the situation hoping to receive thereimbursement from Government. To date, the fundshave not been received.Lastly, during the 2011/2012 financial year the monthlysubvention was E20 132 083, yet the monthly wage billwas E22 000 000.17REPORT OF THE VICE-CHANCELLOR