University of Curacao is technically bankrupt

POSTED: 08/23/11 12:33 PM

WILLEMSTAD – The University of Curacao will be technically bankrupt by the end of the year unless measures are taken to improve its financial position. An audit report concludes that the university will be for 1.1 million guilders in the red by December 31.
The operational losses for 2011 amount to 4.2 million guilders. This figure is a projection, based on the result of the first five months. To avoid a technical bankruptcy the university has to take measures in a hurry to improve its working capital, increase equity capital and improve the costs and revenue structure. These measures should not influence the quality of the university program, the auditors wrote in their report.
The auditors propose to forgive the university a long term loan. The government should also pay its own debt to the university soon, while there is also a need to generate additional revenue from services to the government and to private parties.
The audit shows that the leadership style of rector Miguel de Goede has little support. There is no annual plan and not approved budget. The auditors say that the organization’s culture is a serious stumbling block. There are also quantitative and qualitative shortcomings among the teaching staff. This is not solely the fault of management. The government policy towards university level education has not been developed sufficiently.
The application procedure for vacancies at the Faculty of Societal and Behavioral sciences was not transparent enough and this has resulted in tension within the university, the auditors conclude.

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