The government’s decision to cease its $27.7 million grant to the University of the South Pacific has sent shock waves across the regional institution. [File Photo]

The government’s decision to cease its $27.7 million grant to the University of the South Pacific has sent shock waves across the regional institution.

In a joint letter to Prime Minister Voreqe Bainimarama, the Association of USP Staff and USP Staff Union have raised concerns saying the decision places the University in a critical financial position, jeopardizing the education of Fiji students and staff.

In the letter, the staff have objected to the AG and Minister for Economy’s decision to cease the grant contribution.

The staff are claiming that the Minister for Economy is most supportive of Pro-Chancellor Winston Thompson and Audit Risk Committee chair Mahmood Khan’s allegations against Vice-Chancellor Professor Pal Ahluwalia.

However, the government in a statement yesterday has stated that the letter sent to the Pro-Chancellor and Vice-Chancellor of USP on 23rd September speaks for itself.

The government has also stated that this is not a matter to be resolved through the media.

For this financial year, $27.7 million has been allocated to USP, as part of the Fijian Government’s contribution, which will be disbursed once a grant agreement is signed and upon resolution of the matters which have been highlighted in the letter.

From January to date the government has disbursed $21.8 million.