Controversy over diversion of WSU funds

Grant for science faculty to be spent on student accommodation instead

An amount of R177.5m set aside to consolidate Walter Sisulu University’s faculty of science, engineering and technology (FSET) has been reallocated to buy 11 student accommodation buildings in East London.

The move “came as a surprise and a source of great concern” for faculty head Msimelelo Siswana, who tabled his shock in a memorandum seen by the Dispatch.

WSU Buffalo City campus SRC premier Sipho Sizani condemned the university’s decision, saying: “This move is at the expense of FSET students.

“The faculty is under threat of losing its accreditation almost every year because its environment is not conducive to learning.”

The grant, given to WSU by the national treasury, was to develop a new, well-resourced FSET site in Amalinda.

University spokesperson Yonela Tukwayo said the funds had to be reallocated as treasury was “in the process of collecting unused grant funds for reallocation to fund other national priority projects”.

“The view from management was to use these funds for an infrastructure-related project at the Buffalo City campus instead of releasing the money back to treasury because WSU has a desperate need for funds to finance many infrastructure projects,” she said.

Tukwayo said use of the grant could only be approved by the department of higher education & training (DHET), and they had already given “in-principle” approval knowing there was a likelihood of the money being taken from WSU if it remained unused.

Tukwayo said a negotiation process with BCM, for the use of land to build the site in Amalinda had stalled the development of the FSET site.

“In 2012 WSU started negotiating with BCM for the land in Amalinda.

“Many meetings and discussions have been held with the municipality, and the WSU request has been tabled at municipal council meetings.

“The municipality is in support of the proposal but they are following due process with the land in Amalinda.

“The process is still in the objection phase and there are other steps, like environmental assessments, that still need to be done before the land is handed over.

“We are still a few years away before the deal is finalised — if it passes and is approved through the various steps,” Tukwayo said.

In his memorandum, FSET head Siswana says university management did not consult with the faculty on the reallocation of the grant funds.

“This came as a surprise and a source of great concern to the faculty, especially noting that the reasons for consolidation of the faculty still exist, and that the immediate beneficiaries from the consolidation, the faculty itself, have not been consulted about the intended change of course,” Siswana writes.

Siswana said WSU engineering programmes were due for an accreditation visit in the second semester of 2021.

“These programmes will not achieve full accreditation because this issue of unsuitability of the College Street site has been identified as a deficiency in previous visits,” Siswana wrote.

Sizani said the student leadership at the Buffalo City campus rejected the decision to buy the buildings.

“The SA Union of Students (SAUS) and the WSU Convocation are aware of this situation. The matter has been escalated to other stakeholders,” Sizani said.

The Dispatch has seen a due diligence report signed off by vice-chancellor Rob Midgley on the acquisition of the buildings from property company Pulse Urban Properties.

The report said Pulse Urban had provided WSU’s largest private accommodation service in East London.

Until 2019, Pulse Urban had provided a third of the institution’s private accommodation bed units until the company “disposed” of its student accommodation portfolio.

The report said the intention was to put the properties on public auction.

“When WSU management got to hear of this development, it requested Pulse to put the auction process on hold pending a potential offer by WSU to purchase some of the properties.

“Pulse and WSU then entered into a suspensive sale agreement,” the report read.

WSU has a desperate need for funds to finance many infrastructure projects