Makerere University is indebted to the tune of sh50b, the Vice-Chancellor, Prof. Ddumba Ssentamu, has said.

He was appearing before the parliamentary committee on education, where he and Prof. Wasswa Balunywa, the principal of Makerere University Business School, had been invited to discuss the budgets of their respective institutions.

Ssentamu made the disclosure after Florence Mayega, the director of the planning and development department, told the committee that the biggest challenge faced at Makerere is the inadequate financing.

He told the committee, chaired by Sylvia Ssinabulya, yesterday that the biggest chunk of the sh50b (about sh32b) is pension arrears.

For the financial year 2013/2014, the university has a total allocation of sh202.2b, which includes non-tax revenue of sh122.6b.

Ssentamu said the university management cannot meet the 100% salary increase which lecturers are demanding.

"If they insist on the 100% increase, we may not open next semester," he warned.

Ssentamu said the Ministry of education is trying to negotiate with the Government to take over the entire university's wage bill. A total of sh43b has been allocated to wages this financial year.

He, however, stated that salaries at the university are quite low. "There is a report which recommended that a professor should get a minimum of sh17m. MUASA is recommending doubling of the salary from sh2m to sh4m," Ssentamu said.

He revealed that with effect from next financial year, Makerere will stop feeding students.

Ssentamu explained that they are no longer able to feed students at sh2,000 per head. The university council, he said, decided that this service would be outsourced.

Ssentamu denied allegations that there is mismanagement of funds at the university.

He stressed that the policy requiring students to pay 100% of the tuition on the first day of the semester or 60% in case one is not able to pay at once and the balance paid in six weeks, would be "in full force" in the next semester.