The University of Eswatini (UNESWA) is battling to recover about E100 million in outstanding debt, prompting the institution to engage an external debt collection agency as it grapples longstanding financial pressures and operational challenges.
This was revealed by UNESWA Registrar Bonginkosi Mkhonza, who said the decision to appoint Corporate and Commercial Collections (PTY) LTD followed the exhaustion of the university’s internal debt recovery mechanisms, which had become increasingly difficult and resource-intensive, particularly in relation to former students and former tenants no longer actively linked to the institution.
Mkhonza said while the E100 million reflected in the university’s Debtors Age Analysis included government debt arising from what he termed a measurement difference, the current recovery initiative was specifically targeting long-outstanding recoverable debts owed to the institution.
He said the engagement of an external debt collection agency should not be viewed as unusual, noting that both public and private institutions commonly escalate significantly aged debt to specialised recovery agencies once internal recovery efforts have been exhausted or debts exceed acceptable ageing thresholds.
According to Mkhonza, the university had historically attempted to recover debts internally through reminders, follow-ups, payment arrangements and direct engagement with debtors.
However, management concluded that the growing age of the debt and the challenges associated with tracing former students and tenants had made it necessary to seek specialised debt recovery expertise.
“The continued delay in recovery of these outstanding amounts has negatively affected the university’s cashflow position and operational sustainability,” he said.
The debt recovery initiative comes amid broader financial and operational difficulties that have affected the university in recent years, including delayed salary payments, concerns over delayed government subventions, labour unrest and complaints by staff unions over shortages of resources and unpaid employee benefits.
In previous years, the institution publicly acknowledged challenges in paying salaries and utility bills on time due to delayed government disbursements, while staff unions have repeatedly raised concerns about the university’s financial stability and long-term sustainability.
Against this backdrop, Mkhonza said the current debt recovery exercise was primarily targeting former students who completed their studies without fully settling tuition and related obligations, as well as former commercial housing tenants with outstanding rental arrears owed to the institution.
He stressed that the process was not aimed at currently registered students in good standing, but rather at historical debt that had remained unresolved over a prolonged period.
ALSO READ | Judge summons PS, govt in Alpheous cas
“As a public institution operating under significant financial constraints, the university has a responsibility to strengthen revenue collection and protect institutional resources in a fair and responsible manner,” he said.
Mkhonza said the university had instructed the appointed debt collection agency to conduct the recovery process professionally, responsibly and within the bounds of fairness and applicable legal processes.
He said all debtors maintained individual accounts with the university reflecting invoices raised, payments received and outstanding balances, adding that all amounts being pursued were supported by verifiable institutional records and reconciliation processes.
Mkhonza acknowledged that many individuals faced financial challenges, but maintained that debtors remained accountable for amounts owed to the university. He added that the institution expected the agency to consider reasonable payment arrangements where appropriate in order to facilitate structured settlement of outstanding obligations.
“The intention of the exercise is not punitive. Rather, it is aimed at improving institutional sustainability and strengthening the university’s ability to continue delivering services to students and the broader public.”
He further disclosed that the appointment of Corporate and Commercial Collections (PTY) LTD followed a limited tender process approved by ESPPRA last year. The company was selected based on its experience, technical capability, operational capacity and suitability to undertake specialised debt recovery services.
Mkhonza said the initiative formed part of broader institutional efforts under the university’s ongoing transformation programme to strengthen financial management, improve revenue collection and enhance operational sustainability.
He added that the university had since implemented significant improvements within its internal control systems, including billing processes, debtor monitoring, reconciliation procedures and debt recovery systems, which management expected would significantly reduce future debt accumulation risks.
