SMU CFO Resignation Welcomed by SAUS Amid Financial Governance Concerns

SMU CFO Resignation Signals Push for Accountability in South African Higher Education

The recent resignation of Eminos Manyawi, the Chief Financial Officer (CFO) at Sefako Makgatho Health Sciences University (SMU), has been met with approval from the South African Union of Students (SAUS). Describing it as a "necessary step," SAUS highlighted the move as a critical advancement toward restoring financial integrity at the institution. This development comes amid a series of allegations surrounding mismanagement, procurement irregularities, and governance challenges that have plagued SMU in recent years.

SMU, located in Pretoria and specializing in health sciences education, has faced intensified scrutiny over its financial operations. Manyawi's departure, following a precautionary suspension welcomed by campus unions like the SUCA SMU Branch, underscores growing demands for transparency in university leadership. Students and staff have long voiced concerns about delayed payments to service providers, infrastructure delays, and questionable hiring practices, all of which have impacted daily operations and academic delivery.

Background on Sefako Makgatho Health Sciences University

Established in 2014 from the former Medical University of Southern Africa (MEDUNSA), SMU focuses on training healthcare professionals, including doctors, nurses, and pharmacists, to address South Africa's critical skills shortages in the health sector. With over 5,000 students and a mandate to serve underserved communities, the university plays a pivotal role in the nation's public health system. However, persistent financial hurdles have hindered its growth, mirroring broader challenges in South African higher education where institutions grapple with funding shortfalls, rising student debt, and infrastructure backlogs estimated at billions of rands across the sector.

The Department of Higher Education and Training (DHET) allocates subsidies based on student enrollment and research output, but SMU has struggled with unqualified audits and deferred maintenance costs exceeding R1 billion. These issues have compounded operational inefficiencies, from leaky residences plagued by pests to incomplete facilities like libraries and swimming pools, affecting student welfare and retention rates.

Eminos Manyawi's Tenure as CFO

Eminos Manyawi assumed the role of CFO at SMU in 2017, bringing experience from previous positions in public sector finance. During his time, he was recognized for contributions, such as his appointment to the Finance and Investment Committee of Universities South Africa (USAf) in 2022. However, his leadership drew controversy, particularly around procurement processes and staffing decisions.

Parliamentary records from a June 2025 Portfolio Committee on Higher Education meeting reveal pointed questions directed at Manyawi. Members challenged the high number of foreign nationals in senior roles—10 at SMU—while South African graduates faced unemployment. Patriotic Alliance MP Ashley Sauls specifically grilled Manyawi on prioritizing non-locals, highlighting tensions over employment equity in a country with youth joblessness above 40%.

Allegations of Corruption and Kickbacks

Central to the scrutiny were claims of kickbacks and payment delays. Reports alleged that Manyawi stalled supplier payments until receiving 10% cuts, particularly on the contentious 2,000-bed student residence project. Initially budgeted at R533 million, costs ballooned to R664.4 million due to delays from 2019 to 2021, scope changes, and unverified adjustments totaling R78 million. Contractors like CCB, now in business rescue, faced penalties amid disputes.

Anonymous letters in September 2024 accused Manyawi and Council Chairperson Ms. Rambawuli of bribery and misconduct, prompting investigations by Sekati-Sekati Inc. and the Auditor-General of South Africa (AGSA). While Manyawi denied the claims, asserting weekly payments and departmental verifications, the AGSA flagged procurement lapses and conflicts of interest, such as the CFO acting as Deputy VC for Operations while approving related payments. These echoes a pattern in South African universities, where the Special Investigating Unit (SIU) probes billions in irregularities annually.

Details from parliamentary oversight meetings outline how such practices eroded trust, with service privatization—cleaning, gardening—allegedly favoring cronies over in-house staff.

Photo by Sibusiso Mbatha on Unsplash

Timeline of Suspension and Resignation

• 2017: Manyawi appointed CFO.
• 2022: Joins USAf committee; early recognition.
• April 2025: Social media exposes alleged corruption, payment delays.
• June 2025: Grilled in Parliament; project cost overruns debated.
• October 2025: SUCA welcomes suspension amid harassment claims.
• Early 2026: Resignation announced; SAUS hails as accountability win.
• April 2026: Acting CFO Mahlatholle Masha in place; multiple acting executives signal instability.

This sequence reflects escalating pressure from unions, parliament, and whistleblowers, culminating in Manyawi's exit.

University Response and Leadership Transition

SMU has appointed acting CFO Mahlatholle Masha amid a slate of interim leaders, including in academic, human capital, and student affairs roles. Vice-Chancellor Prof. Tandi Matsha-Erasmus, herself facing separate R36-46 million student transport tender probes, emphasized ongoing investigations and commitment to clean audits. The university denies systemic corruption, pointing to 84% performance metrics and an unqualified audit pending.

Stakeholder engagement remains a priority, with promises to improve SRC and labor consultations. However, ongoing infrastructure woes—flea-infested beds, water shortages—persist, fueling student discontent. For deeper insights into SMU's structure, visit the executive management page.

Impact on Students and Staff

Financial lapses have directly hit students: NSFAS delays affected hundreds, with 84 flagged for duplication checks. Exclusions rose due to debts, while throughput in key programs like dentistry lags at 28%. Staff morale suffered from job insecurity, with outsourcing threatening positions and high acting roles breeding instability.

SAUS's endorsement underscores student unions' vigilance, advocating for probes into similar DHET-funded issues nationwide. This resignation could stabilize operations, but recovery demands forensic audits and equitable hiring.

Broader Financial Governance Challenges in South African Universities

SMU's saga mirrors sector-wide woes: Universities South Africa (USAf) notes misleading corruption claims, but SIU investigations reveal billions lost to tenders. From Unisa's R500k irregularities to Fort Hare's VC suspension, CFO roles are lightning rods for scrutiny. DHET subsidies cover only 40-50% of costs, pushing reliance on tuition hikes (7% at SMU) amid 30% youth unemployment.

Reforms like NSFAS accreditation for residences and stricter PFMA compliance are urged.

Photo by LT Ngema on Unsplash

Role of Student Unions and Parliamentary Oversight

SAUS and campus SRCs have amplified calls for action, from NSFAS extensions to 12 months to anti-corruption policies. Parliamentary visits, planned for September 2025, enforce accountability, as seen in SMU's grilling. This synergy pressures DHET for interventions, fostering a culture of ethical finance.

Future Outlook and Recommendations

With acting leadership, SMU eyes stabilization: Complete overdue projects, diversify funding via partnerships (e.g., TIA for skin innovation), and prioritize locals in hires. Nationally, DHET's 2026 budget must tackle R50b infrastructure backlog. Stakeholders recommend independent audits, whistleblower protections, and digital procurement to curb risks.

For those eyeing higher ed careers in South Africa, opportunities abound in finance amid reforms—explore roles at AcademicJobs.com administration jobs.