Degrees and diplomas awarded by Maseno University may be questioned because the institution currently lacks a permanent chancellor.
The university has been without a permanent chancellor for the past five years, following the end of the term of former Safaricom CEO and chairman, Michael Joseph.
Michael Joseph was appointed for a five-year term starting in January 2014, with his contract concluding on January 6, 2019.
Since then, despite recommendations from the university senate, no one has been appointed to the position.
A recent audit has implicated the State Department for University Education and Research in perpetuating the anomaly.
Auditor General Nancy Gathungu has highlighted the delay in appointing the chief official in her review of the university’s records as of June 30, 2023.
“In the circumstances, the effectiveness of the university’s overall governance and its core mandate of conferring degrees and granting diplomas could not be confirmed,” the auditor general said.
READ ALSO:
Kisumu Central NGCDF to put up new girls school to replace elevated Kisumu Girls
She mentioned in the most recent review that a special senate meeting on March 23, 2022, selected five nominees for the position of chancellor.
The audit reveals that the names were communicated to the Principal Secretary for the State Department of University, who has apparently not yet taken action on them.
“As at the time of the audit in February 2024, no appointment had been made,” the auditor general noted.
The university’s senior management is under scrutiny for not revealing that the institution is financially insolvent.
Gathungu stated in her review that the university had a budget deficit of KSh560 million but did not report it in the financial statements.
According to the audit, the university reported a shortfall of Ksh204 million for the fiscal year in question.
Consequently, the liabilities amounting to Ksh569 million surpass the current assets of Ksh436 million, leading to a negative working capital of Ksh133 million.
“However, management did not make any disclosure… of the material fact that the university cannot sustain its services in the foreseeable future,” the auditor general said.
The university leaders also failed to outline the steps they had taken to address the financial challenges at the institution.
“The university is, therefore, technically insolvent and may face financial challenges in settling liabilities as and when they fall due,” Gathungu said.
The cash shortage is becoming severe, with reports indicating that the university cannot pay off debts totaling Ksh104 million.
Some of the debts, totaling Ksh72 million, had remained unpaid for over 60 days at the time of the assessment.
“No explanation was provided as to why these creditors had not been settled as at June 30, 2023,” the report reads.
“The university management risks incurring extra costs on penalties and litigation due to delayed payments,” Gathungu said.
Auditors also discovered that the university is facing challenges in covering expenses related to statutory deductions.
During the period reviewed, Pay as You Earn (PAYE) totaling Ksh123 million for October 2022, February, and March 2023, was remitted after the due dates.
The university is also liable to pay KRA a withholding tax amounting to Ksh3.8 million.
“No explanation was provided as to why the withholding taxes were not remitted to the commissioner of domestic taxes at the time of payments to the suppliers and contractors. In the circumstances, management was in breach of the law,” Gathungu said.
During the ongoing cash crisis, the university was discovered to have Ksh1.3 million spread across six dormant accounts, prompting an audit query due to ongoing bank charges incurred by these accounts.
“In the circumstances, value for Ksh1, 260,079 held in dormant accounts could not be confirmed,” the auditor said, further flagging breach of public finance laws on payment of salaries.
During the fiscal year in question, Maseno University disbursed Ksh2.4 billion in wages, despite only garnering Ksh3.1 billion in income or revenue.
According to the Public Finance Management (National Government) Regulations of 2015, spending on wages must not exceed 35 per cent of revenue.
The university has also faced criticism for failing to adhere to legal requirements regarding ethnic diversity.
As of June 30, 2023, the university employed 1,143 individuals, with 741 belonging to the predominant Luo community.
According to the NCIC Act of 2008, public institutions are mandated to reflect Kenya’s ethnic diversity in their workforce. Specifically, no more than one third of their staff can originate from any single ethnic community.
By Frank Mugwe
You can also follow our social media pages on Twitter: Education News KE and Facebook: Education News Newspaper for timely updates.
>>> Click here to stay up-to-date with trending regional stories
>>> Click here to read more informed opinions on the country’s education landscape
