Minister of Higher Education, Nobuhle Nkabane, has assured Parliament that stringent verification and auditing measures are being implemented to prevent future financial mismanagement at NSFAS. This comes in response to the substantial sum recovered by the SIU following investigations into financial irregularities.
NSFAS administers an annual budget of around R50 billion to support students from poor and working-class backgrounds. The funding covers tuition and registration fees, as well as various allowances.
Strengthening Audit Procedures
Since President Cyril Ramaphosa signed Proclamation R88 of 2022, granting the SIU authority to investigate NSFAS-related matters, about R1 billion has been returned to public coffers.
During a recent parliamentary session, MP Sanele Zondo questioned Minister Nkabane on measures in place to prevent future misuse of recovered funds. The Minister responded that the Department of Higher Education and Training (DHET) has strengthened internal audit processes to ensure funds reach their intended recipients.
The Internal Audit function now conducts a rigorous review of payment files before disbursing funds. This process aims to detect fraudulent claims and prevent errors in financial allocations.
Establishing a Dedicated Disbursement Unit
To enhance financial accountability, NSFAS is setting up a dedicated Disbursement Unit responsible for monthly reconciliations. This unit will ensure that all financial transactions are reviewed and finalised each month, improving efficiency and oversight in the disbursement process.
The Role of the “War Room”
Minister Nkabane also announced the creation of a “war room” to streamline communication and problem-solving efforts within the higher education sector. Led by the Minister, this platform brings together key stakeholders to monitor registration processes, address challenges, and propose solutions.
Additionally, a WhatsApp group has been formed to facilitate direct communication between DHET, the Campus Protection Society of Southern Africa (CAMPROSA), and NSFAS representatives. University registrars are also included when urgent issues require their input.
These initiatives underscore the government’s commitment to safeguarding public funds and ensuring NSFAS operates with greater transparency and efficiency.
