UNESWA task team report out: Wage bill takes 90% of budget

The much anticipated University of Eswatini (UNESWA) Task Team report is out, highlighting patterns of poor governance and weak internal financial controls.

One startling finding is that over 90% of the institution’s budget is consumed by the wage bill, which is far above the acceptable global benchmark of 65%. According to the report, this raises questions about the sustainability of this position and its impact on the institution’s operations.

This was revealed by the task team in the report this publication got hold of.
The team was appointed under Legal Notice No. 4 of 2024 to review the state of affairs at UNESWA.
The report, which has already been tabled in Cabinet and is yet to be presented in Parliament reveals governance challenges and financial irregularities.
The task team, chaired by Muzi Siyaya, stated that their investigation revealed prima facie evidence of corruption at the university.

However, they emphasised that a comprehensive forensic investigation was essential to uncover the full scope of these transgressions and ensure accountability.
The report highlighted emerging patterns of poor governance and weak internal financial controls, raising concerns about the prudence of continuing to allocate taxpayer funds to UNESWA without implementing stronger financial safeguards.

According to the report, the university spent over E0.5 billion in the past two years on personnel costs, while less than E0.1 billion was spent on utilities.
The task team noted that personnel costs consume over 90% of UNESWA’s total budget, leaving less than 10% for operational needs.

“The inflated Wage Bill, which the vice-chancellor estimates to be around 20% higher than necessary, is further exacerbated by excessive benefits, such as housing and travel allowances for staff residing in their own homes, while university staff quarters remain unused but require maintenance and security,” reads the report in part.

It also revealed that some senior officials have exploited loopholes in the system, such as not taking leave to qualify for cash pay-outs upon retirement, with one recently retired executive cited as an example. The team found unresolved cases of fraud and mismanagement, including issues related to scholarship disbursement and misappropriation of funds, which have caused significant financial losses.

“There are staff members currently on suspension with full pay for acts of misconduct who have been in that state for up to three years.”
The task team further noted that the high cost of expatriates contributed significantly to the wage bill, as some receive gratuities after every two years, but continue working under renewed contracts.

The report also held government partly responsible under the University Act, as four principal secretaries sit on the University Council and participate in crucial decision-making processes, including approving budgets, recruitment, and salary adjustments.
“Questions arise as to why these government representatives failed to leverage their positions to inform government about the deteriorating state of the university,” according to the report.
It further highlighted that delays in government’s payment of subventions have worsened the university’s financial instability.

“Irregular timing and inconsistent amounts of both university fees and subventions have severely disrupted UNESWA’s cashflow. Consequently, the university has experienced significant delays in processing payroll and paying creditors, putting its operations at risk,” it said.
Although government subventions to the university have been increasing, this has not matched rising operational costs, leading to mounting liabilities that hinder UNESWA’s ability to meet its mission of developing a skilled national workforce.
Tuition fees have also remained stagnant since 2016 due to government resistance and legal challenges by students, leaving the university “technically insolvent.”