Unisa moves to close troubled enterprise

2026-03-25 - 05:21

The University of South Africa (Unisa) has apparently resolved to cut its losses and shut down its troubled commercial arm, Unisa Enterprise (UE), following a new internal risk report pointing to a deepening financial crisis. Tabled before the risk management committee (RMC) last month, the Q4 report for 2025 warned the entity may struggle to remain a going concern without urgent intervention. Unisa Enterprise faces closure The report, which The Citizen has seen, paints a bleak picture of declining revenue, stalled mitigation plans and persistent high-risk exposures across key operational areas. UE’s revenue dropped sharply to R4 million in the first quarter of 2025, down from R5.4 million for the same period the previous year. According to the report, the decline is largely blamed on the absence of once-off project income, exposing the enterprise to inconsistent revenue streams. The non-disbursement of an approved R15 million intensified cash flow constraints and limited the entity’s ability to meet operational expenses. Five major risks The report identifies five major risks, with three rated “very high,” including inadequate capacity to implement a turnaround strategy and ongoing exposure to fraud and corruption. Efforts to mitigate these risks appear to have stalled. Progress on key interventions, such as the establishment of an implementation committee to oversee turnaround activities, remained unchanged from the second quarter through to the end of the year. Efforts to address staffing shortages and low morale have yet to yield tangible results, despite proposals to fill vacancies and introduce staff incentives. Security concerns remain unresolved pending the installation of a biometric access control system, while labour instability within UE’s catering division continues to pose a threat to business continuity. Fraud and corruption as ‘high risk’ The report further flags fraud and corruption as a sustained high risk, despite the implementation of disciplinary processes and whistle-blowing mechanisms aimed at strengthening accountability. The RMC was urged to critically review the enterprise’s risk exposure and recommend urgent corrective measures to management and governance structures. The report concluded the UE is at a “critical juncture”, warning without swift, coordinated intervention anchored in financial discipline, leadership strengthening and strategic partnerships, the risk of insolvency, reputational damage and operational collapse will continue to escalate. ALSO READ: Unisa wins restraining order against former registrar