Private varsities — rot and UGC scanner


Shamsul Huq Zahid | Published: September 21, 2015 00:00:00 | Updated: November 30, 2024 06:01:00


Obviously, the government did not relish the withdrawal of the value added tax (VAT) on private universities and medical colleges following 'peaceful' demonstrations by students of those institutions in Dhaka and some other major cities of the country.
All sections of people, including some ruling alliance leaders, appreciated the government decision to revoke VAT on education. However, no government does like to retreat coming under pressure, no matter how justified the retreat is.
The government took the prudent decision to withdraw VAT for it did not want the trouble to travel any further. But the withdrawal must have hurt its ego.
While most people do not support VAT on fees charged by private educational institutions, they are not happy with the developments surrounding the establishment and operations of a good number of private institutions of higher learning.
So, guardians and educationists would lend full support to Prime Minister Sheikh Hasina's directive, given only a day after the withdrawal of the VAT on fees of private universities, to bring private university education under proper monitoring and regulatory framework to ensure quality education. In fact, proper monitoring and streamlining the operations of the private universities have been long overdue.
But it would be a trying job for anyone given the responsibility of monitoring the private universities and fixing their problems for a variety of reasons, including politicisation and greed factor.
Students protested the levying of VAT on education, which, according to them, is not a commodity. But the government, apparently, got inspired to impose VAT on education because of a section of sponsors of private universities and other seats of higher learning sees education as a commodity, sells the same to students and earns pecuniary benefits in different forms, if not profit.  
It is a pity that the government has not paid due attention to the growth and operations of private universities. The so-called regulator, the University Grants Commission (UGC), too has to share the blame for the current state of affairs prevailing in a section of private universities.
The granting of permission to set up new private universities is more or less akin to that of banking and insurance sectors and media world. Initially, the process was more or less fair. But over time the situation deteriorated as political choice got the better of objective considerations.  
Sponsors of the same have been guided by profit motive than anything else as was the case with their counterparts in banks, insurance companies and private TV channels.
However, TV channels and newspapers have one added attraction; those do enhance the muscle flexing ability of the owners. Besides, if the owners desire so, those can be used as shields, whenever necessary.  
But, according to the Private Universities Act-2010, the sponsor/s cannot claim any profit on the money they are required to put in the 'Reserve Fund' while seeking permission for setting up a private university.  Nor can they claim return on investments made on building the university.
However, a section of sponsors, allegedly, have devised the means to accrue financial benefits several times more than the amount they contribute to the reserve funds of universities.
Allegations have it that in the absence of proper monitoring, a good number of private universities and other higher seats of learning in the name of education have been selling certificates only. Students studying in those are learning little and just wasting their parents'/ guardians' money.
The situation would not have reached such a state had the government been careful in granting permission to set up private universities. The private universities have mushroomed in Dhaka and other major cities. Though the relevant act provides for scrapping the permission granted to an existing university for its failure to fulfil conditions set in the relevant act, it is not that easy to implement, throwing hundreds of students into an uncertain situation.
In many cases, political identity, not quality, of sponsor/s is given the highest consideration while granting permission to set up a university as has been the case with banks and insurance companies. Since universities are not supposed to churn out profits, those could, at least, be spared by the powerful quarters.
Now that the highest authority of the government wants to see the state of affairs with the private universities streamlined, the regulator concerned should do what it is needed to do in accordance with the Private Universities Act-2010. But does the UGC have the requisite manpower, logistics and, more importantly, desire to do that?
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