How varsities diverted Sh7.8 billion prompting strike threat

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.

The money was to be paid in two tranches of Sh3.9 billion each in December 2012 and another in August last year.

But the Kenya Union of Domestic Hotels Educational Institutions Hospitals & Allied Workers (Kudheiha), University Academic Staff Union and University Non-Teaching Staff Union (UNTESU) insist the money did not reach their 15,000 members.

The unions have threatened to call a strike over the irregularities including the payments to vice-chancellors, deputy vice-chancellors, principals and university management boards.

“This cadre of staff was ineligible in award of funds under the CBA and were given Sh100 million outside the CBA,” Kenya University Staff Union (KUSU) secretary-general Charles Mukhwaya said. Kusu is an affiliate of UNTESU.

He said the pay was increased by 17.4 per cent and house allowances by seven per cent with other monies going to paying gratuity, pension and recruiting new staff in violation of the CBA.

“We have given universities 14 days to honour the CBA or risk a protracted industrial action,” Uasu secretary-general Muga K’olale said last week. The two-week notice lapses on Friday, January 31.

Last Monday, Education ministry officials met with vice-chancellors and college principals in Nairobi to discuss how to manage the surplus funds.

“Education officials are yet to decide whether the surplus funds will be returned to the Treasury or diverted to other uses by universities given existing shortfalls in government capitation,” University of Kabianga Vice-Chancellor Wilson Kipng’eno said.

Kabianga has a surplus of Sh2.9 million out of Sh101.6 million it received in the entire period. It allocated Sh3.8 million to its four top officials. Technical University of Kenya has written to the Education ministry seeking to appropriate the surplus of Sh74.7 million.

“The university has over the years been undercapitalised, the capitation it received from the ministry is not adequate to even cover its payroll. The university requests the ministry to consider treating this balance as an enhancement of its capitation,” vice chancellor Francis Aduol states in the letter.

The University of Nairobi 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.

“The second installment was used to settle arrears covering the period from July 1, 2010 to June 30, 2012,” a letter signed by UON deputy vice chancellor Peter Mbithi to the ministry shows.