Unisa has refused to bail out the company any further because it has already pumped R70 million into it
The crippled Unisa Enterprise (UE), the commercial arm of the University of South Africa (Unisa), has reportedly been kicked out of its rented offices at Waterfall Office Park in Midrand due to a R3 million rental debt.
According to internal sources, Unisa has refused to bail out the company any further because the university has already pumped R70 million into the enterprise, but there is little to show for it.
The university also reportedly stripped the company of a catering contract after workers at the management company, Unisa Catering Services, were not paid and went on strike.
Long-serving staff members said the company’s catering wing used to make millions of rands for UE and could pay for operational costs, including salaries, and make profit.
“But due to mismanagement and misgovernance, they lost the catering contract,” a staff member said.
The company’s CEO, Lesetsa Matshekga, reportedly told staff in a memorandum, sent out on Wednesday, that “…we will vacate the premises at the end of this month. Staff will work remotely until we secure an alternative, suitable and cost-effective office.”
In the memorandum, which The Citizen has seen, the CEO, who could not be reached for comment, also instructed unit heads to coordinate the relocation process and that “we will need a temporary storage space until we find a new office.”
This comes against the backdrop of desperate staff making an impassioned plea to the university’s management committee to intervene after months of salary payment delays.
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In July, employees expressed frustration over alleged recurring and poorly communicated delays in salary payments for three consecutive months – May, June and July.
The workers charge management provided “last-minute and vague communication” about the financial crisis, leaving staff uncertain about their livelihoods while still being expected to meet work obligations. They said the company was not compliant with the South African Revenue Service, hindering its eligibility for government tenders.
“Our non-compliance is reflecting on the central supplier database and as a result, state institutions are no longer paying the company,” a senior manager said.
According to the memorandum, payments to suppliers have also been delayed, further straining operations.
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Staff members have called on the university to directly assume the responsibility of salary payments to ensure timely disbursement and consider relocating the offices of Unisa Enterprise to the university premises to reduce rental costs.
A memorandum pleaded with the Unisa management committee to intervene and provide support in resolving the financial difficulties facing Unisa Enterprise.
Approached for comment on the matter, the university seemingly washed its hands of the company, saying: “Unisa Enterprise is an autonomous entity that operates independently of Unisa.”
