Unisa Enterprise on the Brink: Unpaid Salaries, Evictions, and Lost Millions

Unisa Enterprise on the Brink: Unpaid Salaries, Evictions, and Lost Millions

The University of South Africa’s (Unisa) commercial arm, Unisa Enterprise (UE), is facing a full-blown financial meltdown, one that has left staff unpaid, suppliers frustrated, and operations in freefall.

What was once envisioned as a model of innovation and self-sustainability for Africa’s largest open-distance university is now collapsing under the weight of debt, mismanagement, and dwindling trust.

Evicted and Out of Cash

This week, staff at Unisa Enterprise were informed that they must vacate the company’s offices at Waterfall Office Park in Midrand by the end of the month. The landlord reportedly locked the company out over a R3 million rental debt.

In an internal memo seen by The Citizen, CEO Lesetsa Matshekga told employees that they would work remotely until new, “cost-effective” premises could be found. Unit heads were instructed to coordinate the relocation and arrange temporary storage space.

But the eviction is only the latest symptom of a company in crisis. According to insiders, Unisa has refused to bail out the enterprise any further, after already injecting R70 million into it with little return.

The Fall of a Once-Profitable Division

Long-time employees point to the collapse of Unisa Catering Services as a turning point. Once a lucrative wing of UE that generated enough revenue to cover salaries and operations, it has reportedly been stripped from the company due to mismanagement and unpaid wages.

“The catering division used to make millions for UE,” one frustrated employee said. “But poor governance destroyed everything.”

Without its key contracts and with suppliers going unpaid, Unisa Enterprise’s reputation once tied to a proud national institution, has been left in tatters.

Staff Left Struggling and Uncertain

Behind the corporate fallout are real people, employees who haven’t received consistent pay for months. Workers say salaries were delayed for three consecutive months, May, June, and July and communication from management was “vague and last-minute.”

“People are battling to pay rent and school fees,” said one staff member. “We’re told to keep working, but how do we stay motivated when our own livelihoods are hanging by a thread?”

The crisis has pushed desperate employees to plead directly with Unisa’s management committee to step in and take over salary payments. They’ve also proposed relocating UE’s offices to Unisa’s main campus to cut rental costs.

Non-Compliance and Lost Tenders

Compounding the problem is the company’s non-compliance with SARS, a red flag that now reflects on the Central Supplier Database, effectively barring UE from securing government tenders.

A senior manager confirmed the financial paralysis:

“State institutions are no longer paying the company because we’re listed as non-compliant. Our suppliers haven’t been paid either.”

This has left UE trapped in a vicious cycle, no compliance means no tenders, and no tenders mean no income to pay salaries or debts.

Unisa Distances Itself

When approached for comment, Unisa’s leadership seemed intent on drawing a firm line between the university and its commercial arm.

“Unisa Enterprise is an autonomous entity that operates independently of Unisa,” the university said in a brief statement.

That response has done little to calm employees who feel abandoned by the parent institution that once championed UE as a bold experiment in entrepreneurial higher education.

A Vision Gone Wrong

When Unisa Enterprise launched, it was meant to bridge academia and commerce, generating income through partnerships, training, and catering contracts. The idea was to ease the financial burden on the university and create jobs.

Instead, insiders describe a company plagued by poor leadership, lack of oversight, and unaccountable spending.

Public reaction on social media has been sharp, with some calling the situation “a cautionary tale for public institutions trying to act like corporations,” while others argue that Unisa itself shouldn’t turn its back on the very entity it created.

What Happens Next?

For now, employees are bracing for another uncertain payday and possibly another month without one. The university, meanwhile, appears unwilling to extend more financial lifelines.

Unless Unisa Enterprise can regain compliance and rebuild credibility, it may soon join a long list of state-linked entities that collapsed under internal rot.

As one staff member put it plainly:

“We were meant to show that public education could do business differently. Instead, we became another warning story about what happens when governance fails.”

{Source: The Citizen}

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