University Inquiry Unveils Deep-Rooted Bookkeeping Failures and Executive Pay Discrepancies
The recent inquiry into the remuneration of university vice-chancellors and senior executives in South Africa has cast a spotlight on not just the figures of executive pay but on the underlying financial governance and bookkeeping practices that enable such compensations. Unveiled issues range from missing records and poor institutional memory to unexplained, large financial payments that bypass established financial and accounting processes. These revelations, highlighted by the inquiry initiated by the Minister of Higher Education, Science and Innovation, underscore a broader context of lax financial governance within the higher education sector, where generous executive remunerations have been maintained and increased without sufficient transparency or accountability. Addressing these deeply ingrained financial practices demands more than just policy adjustments; it calls for a systemic overhaul of the financial governance structures within universities. The report’s findings suggest a disconnection between executive pay and the actual performance of institutions, challenging the moral and economic defenses of current remuneration models.
Source: PMG