Catholic University of Eastern Africa is in deep financial crisis after it has emerged that poor management decisions and leakage of funds amounting to at least Sh400 million by former officials has left the institution in mayhem.
For the last few months the university has been struggling to pay its bills it has been revealed.
With the intuition owning hundreds of millions to workers, suppliers and creditors, insiders at are worried about the future of the institution.
At least 100 part-time lecturers at the main campus have been on a go-slow as the university has failed to honor an agreement it made in May to pay them Sh30,000 every fortnight until all their arrears are cleared, some of them even refusing to invigilate until all the arrears are paid even though the end of semester exams has began.
An audit conducted by Deloitte and Touche and Adept Systems on Dr Rutechura, the deputy vice- chancellor in charge of finance and the chief financial officer over the possible loss of millions of shillings, discovered that the university was losing close to Sh50 million per semester.
“The university was either making payments or owed lecturers money that is not genuine,” reads part of the audit.
The capacity of the priests at the top positions has been questioned; “over reliance on these priests could be the reason behind the financial crisis,” said a worker.
“Even if a priest has challenges with money he is not reprimanded or fired but subjected to internal disciplinary systems which often do not yield any results,” said the worker.
The university’s head of communications, Dr John Nyambega, declined to comment on the issue.