Presentation to Parliamentary Portfolio Committee on Higher Education, Science & Technology
The presentation scheduled for Wednesday, 18 May 2022, to the Parliamentary Portfolio Committee on Higher Education, Science & Technology includes an introduction of the team, progress reports, steps taken to address governance challenges, and updates on various operational aspects at the institution. Key topics covered involve disciplinary cases, forensic report implications, governance and management challenges, NSFAS funding disbursement, leadership transitions, and teaching and learning updates.
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Presentation to the Parliamentary Portfolio Committee on Higher Education, Science & Technology Date: Wednesday, 18 May 2022 Time: 09h00 13h00 Venue: Virtual 1
Introduction of the team Chairperson of Council Mr Morailane Morailane Council representatives Management representatives Prof Marcus Ramogale Acting VC & Principal Mr Morailane Morailane Chairperson of Council Dr Manyane Makua Acting DVC Teaching & Learning Mr Oupa Galane Deputy Chairperson of Council Dr Johan van Koller Acting DVC Resources & Planning Mr Sandile Dlamini Chairperson of the FIC Dr Phumzile Masala Acting Registrar Mrs Ntokozo Mlaba Chairperson of the ARCC Mr Rodney Delomoney CFO Mr Thami Toni Chairperson of the PRC Ms Fozia Madhi Senior Director Legal Services Ms Thulubeke Zwane Chairperson of the HRC Mr Baboo Brijlal Senior Director HR& D Ms Sanelisiwe Mnyandu Chairperson of the SAC Mr Mpho Kau Acting Senior Director Operations 2
Contents The presentation is prepared in line with the letter of invitation 1 2 3 4 Presentation on requested items Q & A session Closing Remarks Opening Remarks Progress in the finalisation of disciplinary hearing cases against employees Consequence management implemented against employees implicated in the forensic report Action plan to implement the recommendations of the Independent Assessor s report into affairs of MUT Steps taken to resolve the current governance and management challenges Progress in the filling of other senior management positions Update on the disbursement of NSFAS funding to students Response on the termination of Dr Malaza s tenure as VC Progress in the filling of the Vice-Chancellor position Update on teaching and learning 3
Steps taken to resolve current governance and management challenges Mr O Galane Deputy Chairperson of Council 5
Governance Challenge Current Status Stepping aside of the Chairperson of Council (following the VC s allegations against him) The Chairperson has been exonerated by the SNG-Thornton Report and was re-elected by Council in December 2020 for a final term that ends in October 2022. Suspension of the VC; Director: Audit & Risk; and Senior Director: Operations Charges were preferred against the 3 officials based on the SNG-Thornton Report. After a disciplinary process that dragged for over 12 months, the University reached a mutual non-disclosure separation agreement with the three suspended officials after they had approached the institution. After negotiations, the terms acceptable to all parties were agreed upon and signed. They have left the University. 6
Management Challenge Current Status Inability to attract and retain staff members with high-level skills in the key areas of Procurement, HR and Operations. The University has approached DHET for assistance in these operational areas. DHET has agreed to offer assistance to MUT in these critical areas through the services of a Multi-Disciplinary Task Team (MDTT). MUT has suggested names to DHET of persons who could be members of the MDTT. We await DHET approval of the names proposed. Council has approved a new organisational structure, including new positions that will be filled in due course. A Senior Director: HR&D was appointed in November 2021. Council has approved at its meeting of 12 May 2022 the appointment of a new DVC Research, Innovation and Engagement; Executive Director Institutional Advancement; and Registrar. Lack of reserves The University has engaged the services of a financial turnaround project manager who will be a resource person in the development of the University s turnaround strategy. The process to develop a turnaround strategy is underway. 7
Progress in the filling of the Vice-Chancellors position Ms Thulubheke Zwane Chairperson of the Human Resources Committee 8
Progress in Filling the Post of VC & Principal MUT s VC and Principal position became vacant on 01 February 2022 when the former VC exited MUT. At its meeting on 07 April 2022, Council formally approved the filling of the position of the VC and Principal. At the same meeting, a Task Team was appointed by Council to oversee the drafting of a Guideline Document for the position of VC. The Task Team had to develop a separate Guideline for the recruitment of a new VC, since the current guidelines were outdated. A draft Guideline Document has been prepared. The recruitment process will commence after Council has approved the Guideline Document. It is envisaged that the recruitment process will be completed by the end of September 2022. Currently, the DVC Teaching and Learning is acting as VC. 9
Response on the termination of Dr Malazas tenure as VC Ms Thulubheke Zwane Chairperson of the Human Resources Committee 10
Termination of Dr Malazas tenure as VC The University Council received an approach from Dr Malaza for a possible settlement. The Council deliberated on the terms of the proposed settlement and gave the go-ahead for negotiations. At the conclusion of the negotiations, a mutual non-disclosure separation agreement was reached with Dr Malaza. The terms were acceptable to both parties. Dr Malaza left the employ of the University on 31 January 2022. 11
Progress in the filling of vacant senior management posts in 2022 Prof Marcus Ramogale 12
Filling of Senior Management Positions There are currently five senior management posts that are vacant. The filling of the following positions was approved by Council at its meeting of 12 May 2022: Deputy Vice-Chancellor: Research, Innovation & Engagement Registrar Executive Director: Institutional Advancement The recruitment process for the position of Deputy Vice-Chancellor Resources and Planning is still underway. The position of Senior Director in the VC s Office will be filled once the VC has been appointed. 13
Consequence management implemented against employees implicated in the forensic report Prof MM Ramogale Acting VC & Principal 14
Consequence Management: Forensic Investigation into Ghost Employees Report by KPMG: A Payroll Accountant from the Finance Department was implicated. The staff member subsequently resigned before the disciplinary enquiry. The matter has been reported to SAPS. Date: 2020-08-03. Ex-staff member s pension was withheld and then paid after he made an application to the Pension Funds Ombudsman. We await feedback from SAPS regarding the criminal case. SAPS processes are slow. The IA 2021 has also recommended that MUT conduct further investigations in this respect of other possible ghost employees 15
Consequence Management: Forensic Investigation into Various Allegations Report by SNG: Seven staff members were cited in various acts of wrongdoing. Due to capacity and financial constraints the University prioritized DC processes the VC, Senior Director: Operations, and Director: Audit and Risk They were charged and appeared before a disciplinary enquiry that dragged on for over 12 months. They have now left the employ of MUT after proposing a non-disclosure mutual separation agreement, which Council accepted. Subsequent to the concluding of the DC processes against the executives MUT is now in the position to prefer charges on the remaining four staff members implicated 16
Response to the recommendations of the Independent Assessor Dr Phumzile Masala- Registrar 21
Response to the Independent Assessors recommendations The Council has provided a comprehensive response to the Minister on Prof Staak s report. The Council is awaiting an engagement with the Minister on how to carry the recommendations forward. Prof Staak identified two issues from Prof Pityana s earlier report that were not adequately addressed: Alternative Dispute Resolution Mechanism - The Council will look at alternative dispute resolution mechanisms as a means of achieving harmony in matters of dispute. Strengthening the Office of the Registrar - The Council has made various senior appointments in the office and has also recently appointed a Registrar. It is also believed that this office can benefit from engagement with the Multi-Disciplinary Task Team which was recommended by the Minister and re-emphasized by Prof Staak. The following slides present the Council s response to the main recommendations of Prof Staak s report. 18
IA 2021 Recommendations Plan to implement A concerted effort should be made to transform the culture of the University. The Council will consider creating a Social and Ethics Committee to strengthen institutional culture. Institutional culture will also be addressed through a culture survey and change management programmes. The discussions on the governance model which Council will undertake in a Council workshop on governance and management challenges (Lekgotla 2) planned for early June will form the basis for embedding culture change in the governance processes of the University. 1 Measures need to be put in place to ensure that the trust relationship between the VC and the Chair of council is properly managed and nurtured. The Council resolved to consider developing a Target Operating Model (TOM), an instrument which deals with relationships amongst various offices. This will entail governance elements. The Council will put measures in place to ensure a strong relationship between the Offices of the VC, the Registrar and the Chairperson of Council. The Council shall have discussions in its Lekgotla scheduled in early June on the model of governance that will strengthen the relationship between the three offices. 2 The suspension of the Vice-Chancellor and the other two senior officials be lifted. The matter no longer arises as the mentioned officials have left the University. 3 The Multi-disciplinary Task Team (MDTT) as proposed by the Ministry be implemented without delay The University has already submitted proposed names for the mooted MDTT. 4 19
IA 2021 Recommendations Plan to implement MUT management needs to change its approach to dealing with NSFAS. Management needs to be pro-active and timeously engage NSFAS regarding any outstanding balances. Any amounts outstanding should be recovered within the financial period to which they apply. The University continues to engage with NSFAS on a cordial basis. If the problem of NSFAS not paying universities what is due to them timeously is resolved, the University will find itself in a better financial position. 5 MUT needs to change its investment approach and make use of external expertise where necessary. The University did not have a policy. The Investment Policy was approved by Council in June 2021 and addresses the issues raised by the Independent Assessor as it gets implemented. 6 Management must prepare regular and reliable cash-flow projections. This does not appear possible without augmenting the finance system. The University will look into using the full functionality of its finance system, which has the capacity to produce the required cash-flow projections. 7 A financial sustainability plan is critical and should be comprehensive. Our recommendations in this regard underpin the philosophy that it should address not only all aspects of its income statement and balance sheet, but also the support system in the form of human resources, infrastructure, governance and leadership. The University is developing a turnaround strategy. The University has engaged the services of a financial turnaround project manager who will be a resource person in the development of the University s turnaround strategy. 8 20
IA 2021 Recommendations Plan to implement There are control weaknesses that were identified in different investigations or audits, which seem to indicate far larger problems. In our view further investigations will be necessary to determine the full nature and extent of these weaknesses. The Council has taken steps to tighten controls in these areas through approving the Supply Chain Management Policy, monitoring quarterly reports on Contract Management, the Procurement Plan and the Irregular, Fruitless and Wasteful and Unauthorised Expenditure. These are monitored through the Finance and Investment Committee and the Audit, Risk and Compliance Committee of Council. Allegations of irregularities may be reported anonymously to a dedicated hotline. Upon receipt of allegations, the Anti-Fraud Working Group, chaired by the VC, determines which allegations merit investigation. Outcomes of all investigations are reported to the Audit and Risk Committee. Where necessary, consequence management is effected. 9 Given the complexities and the nature of the allegations at MUT and our high-level control environment assessment, we recommend that independent and comprehensive investigations be conducted into the following areas: i. Secondary contracts and part-time lecturing (evening classes). ii. Student residence leases and related expenditure, such as transport costs. iii. Payroll integrity. iv. The HR database (with the focus on possible ghost employees) and v. Capital Projects (with emphasis on tenders issued from May 2020). As per above, in some areas investigations had already commenced. The Council has asked the VC to complete investigations into all the areas mentioned in Prof Staak s report. 10 21
Teaching and Learning Dr JM Makua Acting DVC: Teaching & Learning 22
2022 Academic Programme Stability on campus MUT is the only University in KZN that did not experience student unrest during the 2022 registration period. New SRC led in the majority by females Enrolment numbers are on track MUT currently has 13,100 headcounts, against a target of 13,524. Accreditation of programmes by HEQC Eight qualifications were approved in 2021. Accreditation of programmes by Professional Bodies Two qualifications were approved by the HPCSA in 2021; Three ECSA accreditations were received. 23
HEQC Accreditation of Programmes: 2021 The following programmes were approved by the HEQC for offering from 2021 Faculty of Engineering Advanced Diploma in Mechanical Engineering. Faculty of Management Sciences Advanced Diploma in Accounting Postgraduate Diploma in Marketing Faculty of Natural Sciences Advanced Diploma in ICT Advanced Diploma in Chemistry Advanced Diploma in Agriculture Bachelor of Environmental Health Bachelor of Health Sciences Biomedical Sciences 24
Professional Body Accreditation of Programmes: 2021 The following programmes were accredited by professional bodies in 2021 Health Professions Council of South Africa (HPCSA) Bachelor of Health Sciences Biomedical Sciences Bachelor of Environmental Health Engineering Council of South Africa (ECSA) Diploma in Chemical Engineering Diploma in Electrical Engineering Advanced Diploma in Chemical Engineering 25
Student Academic Performance The 2021 academic year was completed in February 2022, with some exams written in the November/December 2021 period and others in January/February 2022. The delivery of modules in hybrid format (using the platoon system) across all programmes proved effective. The following table represents data reflecting student pass and success rates across the three Faculties for 2020-2021. 26
2020 2021 Provisional Success Rates 82,1% 82,6% Pass Rates 80,26% 84,62% Success Rates Pass Rates 83,86% 82,38% FACULTY OF ENGINEERING CHEMICAL ENGINEERING CONSTRUCTION MANAGEMENT & QS ELECTRICAL ENGINEERING MECHANICAL ENGINEERING SURVEY&CIVIL ENGINEERING FACULTY OF MANAGEMENT SCIENCES ACCOUNTING COMMUNICATION ECONOMICS HUMAN RESOURCE MANAGEMENT LAW MARKETING OFFICE TECHNOLOGY PUBLIC ADMINISTRATION FACULTY OF NATURAL SCIENCES AGRICULTURE BIO MEDICAL TECHNOLOGY CHEMISTRY COMMUNITY EXTENTION ENVIRONMENTAL HEALTH INFO & COMMS TECHNOLOGY MATHEMATICS NATURE CONSERVATION MUT Total 93,1% 75,9% 78,5% 83,6% 93,35% 75,89% 75,57% 79,32% 96,25% 80,60% 84,13% 82,10% Student Academic Performance 87,8% 81,5% 93,4% 92,1% 93,83% 84,33% 98,68% 98,98% 92,80% 81,70% 98,29% 98,76% Data not yet available 87,2% 92,7% 90,6% 92,6% 88,4% 97,38% 95,26% 94,54% 97,82% 96,78% 96,81% 92,67% 97,07% 99,00% 97,43% 87,0% 92,5% 88,6% 82,3% 94,8% 86,4% 89,4% 80,2% 84,0% 86,1% 88,0 89,77% 93,97% 96,90% 78,29% 96,66% 97,54% 97,92% 87,90% 98,14% 93,07% 92,72% 95,70% 89,72% 95,28% 96,83% 97,32% 86,90% 98,92% 89,9% 27
Research Performance MUT has made great progress in research in recent years, from a low base. DHET-approved research publication units for 2020 were 105,47, compared with 46,20 in 2019. MUT received the National Research Foundation s Excelleration Award (derived from excellence and acceleration ) for the 2020-2021 year. The award acknowledges the South African research institution achieving the most improved research performance over recent years, as evaluated by independent parties and measured against a selection of critical indicators. 28
Update on NSFAS Allowances Mr R Delomoney Chief Financial Officer 29
NSFAS Disbursement Model to Institutions NSFAS no longer makes upfront payments to Universities. NSFAS is dependent on National Treasury to release the allocated budget to NSFAS so that NSFAS can then disburse funds to institutions. The allocation and transfer of funds by National Treasury to NSFAS is done in early April. NSFAS then disburses funds to institutions. NSFAS no longer makes upfront payments to Universities. NSFAS is dependent on National Treasury to release the allocated budget to NSFAS so that NSFAS can then disburse funds to institutions. The allocation and transfer of funds by National Treasury to NSFAS is done in early April. NSFAS then disburses funds to institutions. MUT received the first tranche of funds from NSFAS on 9 April 2022 in the sum of R215 681 340 in respect of the 2022 academic year. MUT received the first tranche of funds from NSFAS on 9 April 2022 in the sum of R215,681,340 in respect of the 2022 academic year. 30
NSFAS Disbursement Model to Institutions NSFAS disbursement schedule for the 2022 academic year is detailed in the below table: date Disbursement Run Latest Payment Payment Type Pre-condition Payment periods 25 March 2022 April 2022 System Disbursement Valid Registration Data 3 mths (Feb, Mar, Apr) 25 May 2022 June 2022 System Disbursement Valid Registration Data 2 mths (May, June) 25 August 2022 September 2022 System Disbursement Valid Registration Data 3 mths (July, Aug, Sept) 25 October 2022 November 2022 System Disbursement Valid Registration Data 2 mths (Oct, Nov) 31
MUTs Disbursement Process The University pays allowances to students upon registration and NSFAS confirmation of funding. In 2022, MUT was able to use its own resources to fund a portion of the student allowances, without waiting for the first disbursements from NSFAS. MUT pays NSFAS allowances by the 4th of every month. There are no outstanding allowances due to students in respect of the 2021 and 2022 academic year for confirmed funded students. All allowance payments are up to date. MUT agreed with the SRC to pay 70% of the Learning Material and Living Allowances for March 2022 (start of the 2022 academic year) as NSFAS funding would only be received in April. The same was applied in the month of April, as allowances had to be paid on 4th April whilst NSFAS funding was only received on 9 April The balance of 30% was paid to students in April, subsequent to receiving the first tranche of funds from NSFAS. 32
NSFAS Allowances paid by MUT A summary of allowances disbursed to students in respect of the 2021 and 2022 academic years is presented in the table below. ALLOWANCE TYPE Academic Yr Students Learning Material R 54 149 800 Living Allowance R 153 064 740 Transport Allowance R 10 712 625 Support Equipment R 100 000 No. of TOTAL R 218 027 165 2021 11 004 2022 9 541 40 058 630 42 679 050 - - 82 737 680 33
Closing Remarks Mr M Morailane Chairperson of Council 38
Q & A Interactive Session 36
