Finance Minister Enoch Godongwana's announcement of a R1.8 billion increase to the National Student Financial Aid Scheme (NSFAS) budget, raising it to R55.4 billion, has been met with cautious optimism from student unions. While the funding increase is welcomed, concerns about corruption and administrative efficiency persist.
Keamogetswe Masike, President of the South African Student Federation, emphasised the need for stringent oversight to ensure funds are used appropriately.
Over the past two years, we've seen that executive officials at the National Student Financial Aid Scheme have been using that public purse as a personal purse to pursue their personal interests,
Masike stated, highlighting concerns about corruption within the scheme.
The NSFAS, which provides bursaries and loans to students at universities and TVET colleges, has faced significant scrutiny following the dissolution of its previous board due to funding challenges, administrative inefficiencies, and corruption allegations.
Past Inefficiencies and Administrative Overhaul
The previous NSFAS board was dismissed by former Higher Education Minister Blade Nzimande after issues surfaced concerning delayed allowance disbursements, alleged corruption involving the former CEO, and the board's failure to implement recommendations from the Werksmans Report, which exposed irregular service provider contracts.
Masike also highlighted the recurring issue of annual allowance payment delays, disrupting students' studies and causing anxiety.
"The issue here at NSFAS is not about people who are presiding over this entity but it's about the corruption that is plugging the scheme," Masike said.
New Leadership and Commitment to Reform
NSFAS is currently concluding its closeout project to address outstanding payments and has instructed institutions to allow NSFAS-funded students to register.
"Regarding the issue of outstanding payments, on the 31st January 2025, NSFAS released a circular to all public institutions on measures undertaken to ensure that NSFAS-funded students are registered," the scheme stated.
A new board and acting CEO, Wassiem Carrim, have been appointed. Higher Education Minister Nobuhle Nkabane has urged the new board to prioritise efficiency and address student needs.
"When you get into that organisation, turn around that organisation, review the culture, review the strategy and make sure it works, and make sure that it does not leave anyone behind," Minister Nkabane said.
With three board members and the CEO possessing Chartered Accounting backgrounds, the minister expressed confidence in their ability to stabilise NSFAS' finances. Parliament has also expressed confidence in the new board's ability to resolve the scheme's challenges.
