Malawi government has given Mzuzu University (Mzuni) a bailout package of K564 500 000 (about $1.6m) to clear a debt of K850 million (about $2.5m) the university owes various clients.
The university has been in financial turmoil for years despite efforts in diversifying income generating activities.
Speaking in an interview on Thursday, Mzuni acting registrar Yonamu Ngwira said the package is a relief to Mzuni which could not clear its debts.
He said these included pension arrears, money for food, learning and teaching materials and services for vehicles.
Ngwira said the package came after government sent auditors to confirm media reports that the university was in financial problems.
“Things were not okay here. Suppliers started quitting contracts because they were not being paid. The package has come at the right time though we still have a big chunk to clear.
“We are thankful to government for the money and it is our hope that it will continue to help us,” said Ngwira.
He, however, said the institution will still go through financial hardships as it was underfunded, arguing the subvention was way below the university’s budget.