Maravi

Prof Chinene urges govt to subsidise budding institutions

Prof Chinene urges govt to subsidise budding institutions
By Justin Katilungu in Kabwe
Thu 22 Apr. 2010, 03:00 CAT

MULUNGUSHI University vice-chancellor Vernon Chinene has urged the government to consider institutions with subsidies in its formative years before it can attain financial sustainability.

And Mulungushi University council chairman Costain Chilala has asked the government to move fast and operationalise its US$35 million joint infrastructure development investment for the university.

Professor Chinene told education minister Dora Siliya during her visit to the institution yesterday that the university in its initial stages was facing high overhead costs relative to the income being generated internally.

Prof Chinene said that to get the university running, management had to assemble a critical mass of staff resulting in high personnel costs relative to the income being generated internally.

“This situation is however expected to change as student numbers increase. This is the justification for seeking government subsidy in the formative years of the university before we attain financial sustainability,” he said.

Prof Chinene explained that the annual budget for emoluments and other personnel-related costs currently amounted to K24 billion while the grant from the government in 2010 was just K16.9 billion, living a financing gap of K7.1 billion which the university has to source internally.

“This is in addition to having to fund in full all other recurrent costs which in the 2010 budget amount to K19.9 billion, which is quite heavy for a new institution that is barely two years old,” he said.

On infrastructure development, Prof Chinene said the institution was undertaking five projects where the government had already spent K105 billion leaving a financing gap of K28.4 billion.

He was happy that the university had brokered several partnerships with universities abroad in academic ventures.

The university has launched seven-degree programmes, while certificate courses continue and that in September this year the degree programmes would increase to 16.

Labels: CIVIL SOCIETY, COSTAIN CHILALA, VERNON CHINENE

posted by MrK @ 3:16 AM