In April, the then Minister of Higher Education, Blade Nzimande, dissolved the NSFAS board and the National Financial Aid Scheme (NSFAS) was subsequently placed under administration to address mounting concerns over its operations.
The Department of Higher Education (DHET) has announced that a new NSFAS board will be appointed by the current Minister, Dr Nobuhle Pamela Nkabane. The appointment of a new board marks a crucial step in the overhaul of the scheme.
In a statement released, the Minister said:
It is my intention as the Minister to restore governance of NSFAS through the appointment of a board, the Chief Executive Officer, the Chief Financial Officer and the Chief Audit Executive for strengthened accountability.
The Minister said, "In this regard, I will be taking the necessary steps to appoint the board, which shall appropriately reflect the diversity of skills and experience in the relevant and appropriate fields".
Meanwhile, the term of the current NSFAS administrator, Sithembiso Freeman Nomvalo, has been extended to 31 December 2024. However, if the new board is appointed before this date, Nomvalo’s role will end earlier to facilitate a smooth transition.
The period of appointment of the Administrator published under no 4722 in Government Gazette no 50482 of 12 April 2024, shall be earlier of either 31 December 2024 or any date when the new Board is appointed in terms of section 5 of the NSFAS Act, at which date, the appointment of the Administrator shall come to end.
Reasons for the Dissolution of NSFAS Board
Nzimande cited the board’s failure to meet its responsibilities as the primary reason for its dissolution. This included delays in disbursing student allowances, poor organizational management, and a slow response to student concerns.
A pivotal moment came with the release of the Werksmans report in 2023, which highlighted irregularities in a service provider tender process. The report implicated several companies and led to recommendations for contract termination. These events exacerbated the challenges faced by NSFAS and contributed to student financial hardships.
To improve the scheme’s efficiency and accountability, Nzimande placed NSFAS under administration. This move centralized decision-making and allowed for closer ministerial oversight.
The appointment of a new NSFAS board and the ongoing administration are aimed at addressing the systemic issues that have plagued the scheme. As the process unfolds, students and stakeholders will be watching closely to see how these changes will impact access to higher education.
