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Gov’t should use R26.6bil sale of Vodacom stake to fund University fees, says DA

According to a report by the Department of Higher Education and Training, there isn’t enough money available from state coffers to sufficiently fund tertiary education in South Africa. To help solve this issue, the DA suggests government uses the money from the sale of its Vodacom stake, which is worth R26.6 billion.

The proposal comes after the #FeesMustFall protests over tuition increments wrapped up in most universities around the country, after president Jacob Zuma declared a 0% fee increment across all public institutions for 2016. Some institutions, including Wits University, have yet to call an end to protest action.

In 2014, government announced it would be selling its share in the mobile network to the Public Investment Corporation (PIC) for R26.6 billion to help raise money for Eskom; the sale went through at the end of June this year.

Coincidentally, the higher education department said in its report that an additional R2.7 billion was needed in order to cover the shortfall for university funding in the country.

At the moment, government hasn’t announced any plans to cover this shortfall.

Amending the budget

“It is the DA’s contention that the ANC government had an opportune moment to address this funding crisis in the Medium Term Budget Policy Statement (MTBPS), delivered by the Minister of Finance in Parliament just 48 hours before the President’s decision to place a moratorium on fee increases,” the DA said on its website. “It is against this backdrop that the DA has begun the process of amending the budget through Parliament’s Standing Committee on Appropriations.”

DA MP, Malcom Figg, tabled a letter to committee chair, Paul Mashatile on Friday, which suggested the Vodacom share sale funding alternative, among other things.

The average cost of a university education, including accommodation, books and other needs, for one year in South Africa is around R100 000. R2 billion would cover costs for 20 000 students.

Extremely tight

“There is no doubt that the funding will not be found in the Department of Higher Education and Training’s (DHET) university budget. That budget is extremely tight already, with little or no surplus or identified wasteful expenditure that could be transferred,” the DA added.

A further R1.8 billion could be found from transferring budget allocations from various departments to university funds.

“In light of this inability, the DA will be bringing these proposals into the Parliamentary process from next week onwards, starting with Tuesday’s sitting of the Appropriations Committee,” the party said.

[Source – DA, image – CC 2.0 – Ian Barbour]

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