R1OO Million Tender Award, Fort Hare’s First Venture Into Corporate Consultancy

Following the successful bid by the University of Fort Hare Public Financial Services Agency to provide educational services in financial management skills to the Eastern Cape government, Finance MEC Enoch Godongwana announced in his budget speech early this year that, “The long term comprehensive multi-level financial management training and information support programmes are underway and will be a joint venture with tertiary institutions that will help develop a core of finance specialists and also functionaries within the provincial departments.” He said his department placed special emphasis on continuous improvements strategies, which focused on promoting service excellence in Treasury services to other departments while also enhancing its own internal operations responsibilities. He went on to say that the five year contract would be funded to the tune of R100 million by the skills development levy contributions from various developments and promised to be a major project to build financial capacity in the province.

The financial management contract was signed between the Vice Chancellor Professor Derrick Swartz and Provincial Treasury Head Monde Tom in Bisho on the 15th March earlier this year. In the terms of the contract, the Public Financial Services Agency (PFSA) will be attached to the University of Ford Hare Centre for Accountancy Studies, a collaborative venture partnering the University of Fort Hare, the South African Institute of Chartered Accountants and the Rand Afrikaans University. Among the goals the Public Financial Services Agency will work towards are the long term strategy for the Eastern Cape government’s financial system, accredited professional development, training and support in financial management and a financial management information system resource to support strategic decision making, networking, information access and professional development together with the mobilization, empowerment and coordination of a provincial network of institutions to support the public sector.

Addressing heads of various departments at the signing ceremony, Tom said many senior and middle managers in government lacked the skills and knowledge required for financial management. “The training at Fort Hare will help the department overcome problems experienced in producing financial statements at the end of each financial year. Presently we are unable to close our books and produce financial statements. This is a problem, the training will also improve departmental budgeting and accounting practices. There are also problems in the procurement process, which will be addressing through the training.” He said.

Acknowledging the contract, Vice Chancellor Prof. Swartz said, “The University of Fort Hare commits itself to the letter of the contract and was moving towards setting up a consultative agency arm that will lead to the development of government and society.” He said Fort Hare will look for partners to help in other skills needed in developing the financial capacity of government. “This is the beginning of a process that will see Fort Hare venture more into corporate consultancy, using its own academics and its partners.” The programme will link with a number of local, national and international agencies and universities in providing solutions to both practical and theoretical financial problems within the Eastern Cape.

In addition to drawing upon the expertise and other resources of the core Centre of Accountancy Studies partners, the Public Financial Services Agency will utilize the expertise of some of the international partners of Fort Hare, mainly the USA universities of Connecticut and Massachusetts as well as the Canadian Universities of Waterloo and Carlton. The agency will also tap into a provisional and national network of technical experts and institutions allied to Fort Hare through the European Union funded Joint Universities Public Management Education Trust (JUPMET) consortium with whom Fort Hare has built a good track record, companies and individuals who will add value to the corporate task of the agency.