Times Of Swaziland: ‘WHERE IS MOTSEPE’S E10M DONATION TO UNESWA?’

‘WHERE IS MOTSEPE’S E10M DONATION TO UNESWA?’
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Sibusiso Zwane on 22/08/2022 08:41:00


MANZINI – Concerns have been raised on what happened to the E10 million
donated by South African (sa) billionaire Dr Patrice Motsepe to the University
of Eswatini (UNESWA).
There are claims that the money may have been mismanaged in that it was used for
other things other than its intended projects. Nearly four years ago, Motsepe,
through his foundation, pumped in E10 million to UNESWA and some concerned
stakeholders suspect foul play in the management of the donation, as the
institution has failed to carry out any of its planned projects.  Motsepe is the
current President of the Confederation of African Football (CAF). The SA mining
mogul donated the E10 million through the Motsepe Foundation to UNESWA during
its 38th graduation ceremony in October 2018. During the ceremony, Motsepe, who
completed his Bachelor of Arts in Law at UNESWA in 1984, spoke on behalf of
outstanding academicians and politicians who were conferred with honorary
doctorates for excellence in their diverse fields or disciplines.
One of the concerned stakeholders said after the donation by Motsepe, who is no
stranger to the country as he completed his O’Level in 1979 at St Mark’s
High School before he proceeded to UNESWA, some of them made proposals on how
the money could be used. For example, the stakeholder said students asked that
part of the donation should be used to add accommodation in the university,
which has three campuses; Kwaluseni, Luyengo and Mbabane. However, the
stakeholder said later on, the university administration presented a documented
plan for the E10 million donation. It was said among other things, the plan was
that the donation would be used to construct a library at Mbabane Campus, new
classrooms at Kwaluseni Campus and offices. It was said some of the suggestions
from stakeholders, like accommodation for students, were not considered.
“The issue now is not about the fact that our suggestions were ignored, but
where the university had used the money because it had not even implemented its
own planned projects?” the stakeholder wondered. In fact, the concerned
stakeholder said the manner in which the matter was handled and considering the
cash flow challenges which are faced by the institution, one could not rule out
that the funds may have been utilised elsewhere.
Stakeholders
Other stakeholders who were contacted about the issue, including the student
body, students representative council (SRC), shared the same sentiments. They
argued that under normal circumstances, projects were usually delayed by the
lack of funds, but in this case, a sum of E10 million was donated, which meant
that money was available. “The question is why the planned projects are not
carried out when the money is still available?” wondered some of the
stakeholders. They said after the university administration had presented their
plan on how they would use the E10 million, which according to their
understanding was part of the Motsepe Foundation’s conditions of the
donations, contractors were engaged in the development of classes at Kwaluseni
and Mbabane Campuses and Chakaza Holding Company signed a contract. Thereafter,
he said at around the last quarter of 2019/20 financial year (February/March
2020), Chakaza Holding Company, which was reported to have partnered with
Eswatini Asset Developers to subcontract in the construction of the said
buildings, set up its construction site at Kwaluseni Campus.
Classrooms
A visit by this publication at the tertiary institution in March 2022 found that
the site had already been established. On the same note, at that time, UNESWA
Registrar Dr Salebona Simelane said the money would construct classrooms and
offices at the two aforementioned campuses. He confirmed that the university
invited tenderers and one was awarded. He added that construction would commence
soon. However, later on, this publication learnt that the contract signed by the
construction company with the university had been cancelled and the construction
of classes had been stopped. The reasons for this were not clear. Indeed, this
publication discovered that the construction company had packed its property and
left the construction site at Kwaluseni Campus. Following these developments,
the concerned stakeholders said this left them with unanswered questions and
emphasised that a reasonable person could not rule out that the funds of
implementing the projects were used somewhere else. They said this assumption
could be based on the cash flow challenges which were faced by the institution.
Meeting
UNESWA SRC Secretary General Lindokuhle Mabuza said they had made some enquiries
about the matter from the administration, but they never got responses. Instead,
he said they had been invited to a meeting today. However, he pointed out that
in as much as they did not have information about what was happening with the
money, they believed that it was long used.
On the other hand, the university’s Association of Lecturers, Academic and
Administrative Personnel (ALAAP) General Secretary, Dr Mduduzi Shongwe, said in
as much as they were aware of the donation and the circulating suspicions, the
matter had not been discussed at union level.
It is worth noting that the cash flow challenges which are faced by the
university were recently revealed by the Auditor General (AG), Timothy
Matsebula, in his recent compliance report.
The report showed that UNESWA was among the about 22 public companies whose
future looked bleak as they were owing huge taxes. The situation was so dire in
the about 22 parastatals such that the AG noted that they might need a serious
government bailout to be able to sustain their operations going forward.
At UNESWA, the AG noted that for the year ended March 31, 2021, the institution
had an accumulated deficit of E1 087 171 217 and a net operating deficit of E189
172 410. He also noted that its liabilities exceeded its assets by E947 119 955
and outstanding unremitted taxes to the Eswatini Revenue Service (ERS) amounted
to E688 208 822. The report also disclosed that the university received at least
70 per cent of its funding through subventions from government and on average,
the university received 40 per cent of what it had requested from government.
Also, the university literally subsists on credit from suppliers. This means
that it obtains goods and services on credit and fails to pay some of the
suppliers. The AG also expressed concern that since government’s revenue
streams were declining, without increased subventions or other means of
generating income within the university, the services provided to the public
could not be sustainable, in the near future.
Overdraft
He said the university was also at risk of losing assets that were held as
security for a bank overdraft facility, which had significantly increased by E19
359 885, from E7 938 865 to E27 298 750. It is also worth mentioning that when
making the donation, the mining magnate said; “On behalf of the Motsepe
Foundation, we are going to donate E10 million. They will tell us where they
will use the money as I have no clue of where it is needed the most.” Be that
as it may, Motsepe pointed out that the money should benefit all students
academically, by making learning smooth. Expanding on his remarks, he added that
he sat on the advisory committee of Harvard University in America. He said being
part of the committee was a learning experience as he got to interact with the
most successful academics worldwide as well as prominent entrepreneurs and
businesspeople.