DEPARTMENT HIGHER EDUCATION AND TRAINING

1. DEPARTMENT HIGHER EDUCATION AND TRAINING Considerations on the future of National Institute of Higher Education (NIHE) in Mpumalanga (MP) and Northern Cape (NC) 6 November 2013

2. Background • Higher Education Act No 101 of 1997 provides the scope and functions for the NIHE as currently applicable which are to: • Coordinate the regional provision of higher education • Ensure the coherent provision of higher education through programme collaboration between public higher education institutions operating in the province in question • Advise the Minister on matters relating to the coordination of the provision of higher education in the region in question • Perform any other duty which may be prescribed

3. Background • Higher Education Act No 101 of 1997 was amended by Act 38 of 2003 and by Act 23 of 2012, whereby • Inserted and amended Section 38A allows the Minister to establish a NIHE in MP and NC • Inserted and amended Section 38B defines the functions of a NIHE as to: • - provide services to higher education within its specific scope of application • - advance learning within its specific scope of application by ensuring collaboration, co-ordination or collaboration and co-ordination of the work of higher education institutions and national institutes for higher education • - advise the Minister on matters relating to its specific scope or application, or to higher education generally

4. New Universities • Government Notice 630 of 22 August 2013 (GG Vol 578 No 36772) establishes Sol Plaatje University in Kimberley, NC • Govt Notice 631 of 22 August 2013 (GG Vol 578 No 36772) establishes University of Mpumalanga in MP • Establishment of the new universities implies that they have overtaken the functions of the NIHEs in terms of: • - provision of higher education programmes • - universities’ objectives with regard to the direct advancement of learning • - universities’ obligations to advise the Minister on matters relating to higher education generally through the Minister’s appointments on the Councils of the new universities

5. Status of the NIHEs must be reconsidered • Consideration should incidentally take into account that: • a full due diligence exercise has been conducted for each NIHE and is available from the University Education branch of the DHET • NIHE-NC is currently engaged with certain on-going projects that must be borne in mind • NIHE-MP is currently engaged with the Siyabuswa Education Campus Project, Dinaledi Project, upgrading of ABET educators and implementation of Phase 2 of the Siyabuswa Infrastructure project on behalf of the New Universities’ Project Team

6. Appears to be 3 options for each NIHE Incorporation of the NIHE into the new university This is not a legal option as the Higher Education Act does not allow for the incorporation of an institution that is not a higher education institution

7. Appears to be 3 options for each NIHE The NIHE continues but with new specific scope or application Redefinition must take the new universities into account, and the potential for a direct conflict of interest Scope redefinition will likely create contention and potential conflict with not only the new universities but also current post school structures e.g. FET colleges and Provincial educational structures, thereby hampering new universities ability to create clear lines of understanding and communication with these Any possible future functions of the NIHE would naturally form part of the new universities strategic interventions for the future

8. Appears to be 3 options for each NIHE The NIHE is disestablished Seemingly the only alternative Would follow the course of a cessation of functions and a dissolution of the legal entity in terms of the PFMA and Labour Act Any such decision would need to incorporate an overall plan that would need, for the sake of minimum disruption to tasks and staff, take into account specific circumstances per province

9. If a NIHE were disestablished • The NIHE’s continuing functional obligations on current projects until convenient withdrawal or end, or possible handover to the new universities • Dissolution of the NIHE and its resources would need to link closely with the expansion of the new universitieswhere possible without creating expectations of continuation of employment • Transfer of contracts and assets where this is in the interest of the new universities • Financial provision where required for staff retrenchment packages • Appointment of competent resources to close the NIHE legal entity, dispose of its assets as required legally and coordinate the cessation of employment of staff

10. Financial implications for NIHE disestablishment • Funding would need to be provided for the closure of the NIHE legal entity where sufficient reserves are not available from its accounts • A physical audit of assets would need to be conducted, which would require funding • The question would remain as to whom the assets, liabilities and contractual arrangements (if any) would revert and, in particular, any remaining unclaimed investments • Clear guidelines should be provided by DHET as to how the service contracts should be managed for the NIHE • No further staff appointments should be made by the NIHE once notice has been served on the Board in terms of Section 38O of the Higher Education Act as amended

11. Legal Requirements for NIHE disestablishment • Section 38O of the Higher Education Act No 101 of 1997, as amended by Act 38 of 2003and by Act 23 of 2012, and subject to the PMFA of 2000 provides for the disestablishment of a national institute of higher education • The Minister may after consultation with the CHE and by notice in the Gazette, disestablish any national institute for higher education • The Minister is required to give notice to the board of the NIHE of intention to disestablish the institute, and to request representations from the board and provide reasonable opportunity to make such representations from the board and provide reasonable opportunity to make such representations

12. Thank You