The National Student Financial Aid Scheme (NSFAS) has incurred a staggering R60 billion in irregular expenditure over the past four years. This revelation comes as the scheme’s 2024 annual report was presented to the Portfolio Committee on Higher Education.
NSFAS submitted its 2022/2023 annual report to Parliament over a year late. The delay was attributed primarily to the dissolution of the NSFAS board, which disrupted the process. The Office of the Auditor-General, which attended the session, highlighted the serious audit findings.
Irregular Expenditure Breakdown
They estimated that NSFAS racked up R60 Billion in irregular expenditure over the last four years. According to the report, the lack of clarity in the NSFAS eligibility criteria led to significant irregular expenditure in 2019/2020.
The appointment of the NSFAS allowance direct payment system providers, which the scheme has since abandoned, also contributed to irregular expenditure in 2022/2024. The contention NSFAS Cape Town Headquarters Lease also counted against the scheme.
Calls for Greater Accountability
Chairperson of the committee, Tebogo Letsie, stressed that NSFAS is critical for students but noted the challenges in allocating funds without proper accountability. The scheme, which receives around R50 billion annually, is essential for students from disadvantaged backgrounds to access tertiary education.
If NSFAS fails to account for funds, it becomes difficult to allocate money to the right students
He emphasised that without effective financial oversight, deserving students could miss out on vital funding.
NSFAS Board Changes and Administration
In light of ongoing challenges, the NSFAS board was dissolved in April 2024 by former Higher Education Minister Blade Nzimande.
The bursary scheme was then placed under administration, with Freeman Nomvalo appointed as the new NSFAS Administrator. Minister of Higher Education, Nobuhle Nkabane, confirmed that a new board will be appointed soon.
Preparing for the 2025 Academic Year
The committee remains optimistic about the 2025 academic year, with stakeholders assuring that systems are in place to support both returning and first-year students.
NSFAS has also announced plans to release R3.7 billion in upfront payments to universities in January 2024, ensuring timely disbursement of student allowances. Additionally, a separate upfront payment of R641 million will be made to TVET Colleges by 10 January 2025.
