The Higher Education Department Is going insolvent after the Auditor-General’s report among other things, showed that the department’s irregular expenditure reached R929 million in 2016/17.
According to the Democratic Alliance, the Auditor-General’s 2016-2017 report on Higher Education and Training showed that the department is going insolvent.
The reports include a few warnings which need urgent attention.
DA referred to another 2015 study which stated that 10 universities incurred operating deficits and only form of them made annual losses.
The party also warned that the nearest future is bleak for the higher education department. “This massive and unwieldy Department have 78 entities reporting directly to it, as well as indirect responsibility for 26 Universities.
Managing all of this is too much for it to handle on its current budget and staffing level, as our economy staggers under the burden of ANC failure,” said the party.
One of their highlighted points included the fact that most universities carry enormous levels of student debt, much of which has to be written off.
Their situation is less likely to improve in the subsequent two years. They also made a few other facts concerning the financial states for higher education and training institutions.
The future of higher education looks bleak and this situation must be addressed with urgency by finding solutions.
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