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No, we are not in cash crisis, UoN says

The University of Nairobi has refuted the Auditor General’s report that the institution is in a cash crisis.

The Auditor general Edward Ouko had stated in his report that the institution was surviving on commercial bank overdrafts.

But the institution in a statement on Thursday said it was not in a financial crisis but was experiencing cash flow challenges that it said are “emanating from delayed exchequer issues.”

“Negotiation for an overdraft facility is a normal and regular financial practice to deal with urgent cash flow requirements to meet financial obligations and not necessarily an indication of a financial crisis,” stated the institution.

STATUTORY DUES

The auditor general’s report had stated that the university had fallen behind in paying statutory dues to the Kenya Revenue Authority, Pensions Scheme, National Hospital Insurance Fund, National Security Fund, Higher Education Loans Board and University of Nairobi Co-operative.

“UoN is compliant and upto date with respect to remission of statutory deductions to KRA, NSSF, Pension schemes, HELB, SACCOs etc,” read the varsity’s statement.

The institution added that the report was of the 2014/15 financial year and was not a true reflection of the current financial status.

“The financial situation obtaining during the 2014/15 FY was as a result of unpaid claims from the government and other public universities,” stated the university.

SALARY REVIEW

In the same statement the university agreed with the audit report on some issues including that the government owes it Sh627.7 million for staff pensions.

“The staff salary review award following the CBA in 2010 put a lot of constrain on the University finances i.e the university made payments of 194.8 M on behalf of other universities and the claim had not been settled by the government,” stated the institution.

The report had dismissed claims of ethnic hiring and termination of staff but noted that one community dominated the list of officers promoted during the period under review.

In its statement the university said that “UoN fairs favourably in the National cohesion and Integration commission latest survey report on the practise of ethnicity in public institutions.”