Minister Nzimande balancing the books on the backs of the poor
04 November 2015
Minister of Higher Education and Training, Blade Nzimande, will be dipping into development grants for Historically Disadvantaged Institutions (HDIs) to keep universities afloat at the beginning of the year ahead of the R2.33 billion shortfall created by the 2016 fees freeze.
When asked today in Parliament why he has not requested the R475 million needed before April 2015 to be transferred to his department from frivolous expenditure in other departments in the Medium Term Budget review, the Minister simply stated that the HDIs would not be prejudiced by losing that money. The Minister did not explain why, and ducked the questions on why he did not request funding through the current budget amendment process.
We heard today in a special committee meeting that the department has estimated that there will be a shortfall of R2.33 billion in University funding created by the fees freeze in the 2016 academic year and that this will be provided for by Treasury in the 2016 budget.
However the Department also acknowledged, as the DA has been saying for weeks, that universities, particularly historically disadvantaged institutions (HDIs) could be pushed over the brink into bankruptcy as a result of the fees freeze, before the 2016 budget period kicks in. They will have to pay their bills from January 1st next year, whereas they will only receive their promised additional funds in April. As a result, they will be at least R475 million short in the period January to April.
We were dismayed to find that the department is expected to find this money out of its own coffers and that no additional money would be coming from National Treasury to assist the chronically underfunded department in what remains of the 2015 financial year.
Furthermore, we were told that this move will necessitate the raiding of the coffers of, among other things, the National Skills Fund and the until-now ring-fenced R2 billion once-off development grant to develop HDIs.
These are both priority areas, which are themselves in desperate need of additional funds, and they will suffer to address the emergency shortfall in university budgets in this financial year. It is shocking that the department has not requested assistance from National Treasury to cover even a portion of the shortfall when it is clear that there is at least R900 million in frivolous and unnecessary expenditure available for redistribution in the Medium Term Budget.
The DA will continue to engage with the issue in the Appropriations Standing Committee and elsewhere in Parliament to secure this much needed funding from frivolous expenditure in other departments in the Medium Term Budget.
We must- at all costs- prevent the syphoning away of funds from the already cash–starved Department of Higher Education itself.
Statement issued by Prof Belinda Bozzoli MP, DA Shadow Minister of Higher Education and Training, 4 November 2015
