Financial troubles continue to mount for Saint Augustine’s University as a Wake County judge has ordered the historically Black university to pay more than $20 million to a wireless company.
According to court documents obtained by WRAL, the university is in default and must pay SBA Connect, LLC, a total of $20,234,785.30 for failure to pay them.
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The ruling states that SAU failed to plead or defend itself in the case, leading to a default judgment.
This legal setback is one of two lawsuits filed against the school involving unpaid bills. SBA Connect’s lawsuit prompted IT company Avaria to sue the university for unpaid bills.
However, the court documents related to this ruling do not mention the second company, which is Avaria, an IT provider.
Alumni are expressing frustration with the school’s financial management and are calling for leadership changes.
“It’s just another hit in a long line of blows; the lack of responsibility, lack of board governance, lack of oversight by those left in her charge,” said Karole Kimble, a class of 1992 graduate of SAU.
Kimble, whose family has a long history with the university, said she once hoped to continue the longstanding legacy of family attending SAU, but the current situation has changed that.
“I can’t even send my children there, and that was always my plan,” she said.
Kimble believes the university’s legacy is at risk due to ongoing mismanagement.
“My concerns for the school’s future are, if we don’t make a change in leadership, that the problems will continue, because that has been the only thing consistent with the current board of trustees at SAU,” she said.
WRAL reached out to Saint Augustine’s University for comment but has not yet received a response.
In addition to the court ruling, SAU is also continuing to fight to regain its accreditation. The university’s appeal was denied in March, and arbitration is scheduled for June 26.