Cape Town - Higher Education and Training Minister Blade Nzimande has appointed an administrator to redeem the troubled Walter Sisulu University within the next two years.
The institution, located in the Eastern Cape town of Mthatha, services mainly impoverished and rural students in the Eastern Cape province.
The minister revealed that there had been unanimous agreement with university stakeholders to place it under administration.
Addressing the media in Cape Town on Wednesday, Nzimande said the university was "technically bankrupt and needed serious attention".
While no corruption had been identified, he said that an investigation should be carried out as the institution had "many bank accounts with different signatories".
He said that in April, the department's assessment of the university revealed "a litany of problems" relating to poor financial management, poor human resources practices and outdated information technology.
Nzimande announced that he had appointed Professor Lourens van Staden as the Administrator for the university.
Van Staden will have to carry out a forensic audit of the institution "in order to identify corrupt practices" and take legal action as well as take over the management of the university and "steer it back to operational and financial viability".
He has further been tasked with strengthening the structures, systems and policies of the university to ensure good governance and the restoration of the culture of teaching and academic integrity at the university.
He is also to take over authority of the council of the university for a period of less than two years.
The minister believed Van Staden could turn the institution around.
The professor, who started his new job this week, remarked that his first task would be to ensure that the university's staff compliment of over 2 000 people will have their salaries for the next four months.
The department said banks wanted to support the institution on condition that someone responsible would be put in charge.
It said that more funding would be sourced from the National Skills Fund.
The department could not say how much the university needed, leaving the job to the administrator.
