Council debates risk of defunding by US Federal Government

Dear staff and students

At its first ordinary meeting for 2025, the University of Cape Town (UCT) Council had a lengthy agenda but focused mainly on the threats of defunding, especially of the National Institutes of Health (NIH) grants of which UCT is the largest recipient outside of the USA. The threat arises from a foreign policy position adopted by the new US administration, which is radically different to its predecessors.

The effects of these policy changes have been felt globally, nationally and even domestically in relation to our NGOs and universities. These policy changes have been effected by presidential executive orders at short notice.

These changes, their adverse effects and their dire financial implications for the university were highlighted by the Vice-Chancellor (VC) Professor Mosa Moshabela and his executive team in comprehensive presentations to Council.

Many questions were asked, and answered, and some answers remain uncertain.

The debate that followed in Council was intense and robust as expected from members who are required to exercise their fiduciary duties in the best interest of the university.

A range of diverse views were expressed, including a view that the Gaza resolutions adopted in June 2024 should be rescinded in order to facilitate management’s task in procuring funding from funders/donors who have either withdrawn or threatened to withdraw their funding or donations, or from new or different funders.

Another view was that every effort should be made to procure alternative funding from other countries supportive of South Africa.

Although not on the agenda for discussion, a motion that the Gaza resolutions and the university’s opposition to the pending Western Cape High Court case be rescinded was tabled. The university statutes in such an instance requires Council to first vote on whether or not to entertain a vote on the merits of the motion.

The Council vote was tied. However, as a result of the Chair’s casting vote, a further vote on the merits of the motion was permitted.

By narrow majority, the motion was not carried.

An additional motion that a Council task team be appointed to assist the executive in, inter alia, procuring alternative funding was also not carried.

In conclusion, Council expressed the unanimous view that it was satisfied that the VC and his executive team had worked tirelessly (in most difficult and complex circumstances) to address the challenges of defunding or potential defunding, and that Council is fully supportive of their continued efforts to do so to avert possible job losses.

The university community is assured that its General Operating Budget remains unaffected for the year 2025. In fact it was reported by the University Finance Committee that the university budget deficit has been reduced from R300 million in 2023 to a break even budget in 2025.

The NIH cuts or proposed cuts will affect mainly our Faculty of Health Sciences and its research programmes. The faculty and the Leadership Lekgotla are currently engaged in working on mitigation strategies.

To date hereof, no formal notice of defunding has been received by UCT although the university remains on high alert.

Council notes with grave concern that some of its deliberations and outcomes of voting were recorded and leaked to a US-based online media house. The article published contains what appears to be a verbatim or close to verbatim statement made by a member of Council at the meeting. Some of the commentary in the article is also false and misleading.

Several Council members who attended the meeting in person have requested an investigation into the breach of security. Ironically, an item on security breach was on the Council agenda but was held over because the meeting was adjourned due to time constraints and the month of Ramadan.

I have convened an urgent Council executive meeting to discuss, inter alia, the security breaches involving leaks to outside third parties.

Our VC otherwise reported on a well run university maintaining its high standards of teaching and learning and that it remains the university of choice in the country and the continent. Student enrolment is up, and 26 out of 37 of the country’s top matriculants for 2024 who applied are enrolled at UCT.

The student debt and accommodation issues have been effectively addressed.

The university remains committed to its core values: truth, fairness, consistency and integrity in both academic and other work, and in all personal and institutional relationships.

Sincerely

Norman Arendse (SC)
Chair of UCT Council

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• From the UCT Executive
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