How varsities diverted Sh7.8 billion prompting strike threat

The Fountain of Knowledge at University of Nairobi. The varsity said it used the second instalment to settle arrears from the previous CBA period and was left with a surplus of Sh12.2 million out of the Sh1.4 billion released. FILE 

By  NEVILLE OTUKI,

In Summary

• 75 top officials in various universities received Sh404.4 million out of the Sh7.8 billion negotiated between three unions and the government two years ago.
• The universities’ administrations are also holding another Sh735.5 million from the funds.
• The money was to be paid in two tranches of Sh3.9 billion each in December 2012 and another in August last year.

 

Public universities diverted money meant for increasing salaries of unionisable staff to address capitation shortfalls despite denials by the institutions’ top managers.

Documents seen by the Business Daily show that 75 top officials in various universities received Sh404.4 million out of the Sh7.8 billion negotiated between three unions and the government two years ago.

The universities’ administrations are also holding another Sh735.5 million from the funds.

For instance, a letter dated November 28, 2013 from Jaramogi Oginga Odinga University of Science and Technology to the Education ministry attributed the surplus to “tabulation challenges.”

“This surplus has been applied to support the current payroll, which continues to face financing deficit,” reads the letter signed by vice-chancellor Joseph Bosire to Education principal secretary Belio Kipsang.

University of Eldoret also admitted to having diverted part of the funds to settle payroll deficits while “awaiting the guidance of the ministry”.

Last week, the Inter-Public Universities Council Consultative Forum (IPUCCF), the team of top university administrators that negotiates with the unions, said staff were paid according to schedules worked out and agreed upon with the unions.

IPUCCF attributed the surpluses and deficits in some universities and constituent colleges to “natural attritions and movement of staff during the CBA period”.

“Each university/constituent college has individually accounted for the funds it received and committed to remit back to the ministry any surplus or claim reimbursement of any deficit,” a statement signed by the Vice-Chancellors’ Committee chairperson, Mabel Imbuga, read.

Receipt and disbursement reports on how each institution managed the allocated funds were presented to vice-chancellors at Serena Beach Hotel in Mombasa for scrutiny on December 9 last year. It was prepared by the University of Nairobi finance officer, Michael Karue. The report shows a total of Sh404.4 million was reserved for “top management.”

READ: University lecturers now issue salary strike notice

Maseno University Vice-Chancellor Dominick Makawiti, who sits on IPUCCF board, dismissed claims that four top officials in the institution received Sh4.4 million as indicated in the document.

“Let the government auditor intervene to establish the correct financial position of universities. If anything, Maseno University ended up with Sh30,000 less after paying staff,” he added.

Staff unions, however, maintain the universities contravened the CBA by illegally allocating themselves dues and diverting expenditures.

The pay agreement was reached after lecturers and non-teaching staff boycotted duties pushing for higher salaries and housing allowances. Workers were awarded a 33 per cent increase in salaries and a 14 per cent increase in house allowances.