Minister of Higher Education Blade Nzimande has taken the decisive step of dissolving the board of the National Student Financial Aid Scheme (NSFAS). On Friday, 12 April, NSFAS, a government entity tasked with providing financial assistance to eligible students for tertiary education, was placed under administration.
This move comes amid escalating concerns over NSFAS’s ability to effectively fulfil its role as a student funding system. In recent months, former board chairperson Ernest Khosa and Minister Nzimande were implicated in corruption allegations involving kickbacks from NSFAS service providers.
Despite resigning as board chairperson, Khosa states that he is innocent of the allegations against him.
Regardless of opposition parties and civil society groups calling for his resignation, Nzimande denies all corruption allegations and remains steadfast in his commitment to reforming NSFAS.
One of the primary issues plaguing NSFAS has been the delayed disbursement of student allowances, which has left thousands of students deprived of vital financial support for necessities such as accommodation and food.
In June 2023, NSFAS implemented a direct payment system that relied on four appointed service providers to manage the disbursement of allowance to students.
These service providers were appointed during the tenure of former NSFAS CEO Andile Nongogo, who was dismissed in October 2023 following an investigation by Werksmans Attorneys into allegations of irregularities related to the contracts awarded to these four companies.
Minister Nzimande underscored several key reasons behind the decision to dissolve the board, chief among them being the board’s incapacity to implement crucial recommendations, including terminating contracts with service providers responsible for allowance payments.
In response to these challenges, Freeman Nomvalo, former CEO of the SA Institute of Chartered Accountants, has been appointed as the administrator for NSFAS. Minister Nzimande reiterated his commitment to reforming NSFAS and ensuring deserving students receive timely and adequate financial support to pursue their educational aspirations.
Student organisations, including the South African Students Congress (SASCO), have long advocated for reforms within NSFAS and view the dissolution as a positive step forward. However, with more than 60% of university students funded by NSFAS, according to Universities South Africa (USAf), which represents the vice-chancellors of the 26 public universities, the dissolution of the NSFAS board has left students in a state of uncertainty regarding their financial support for tertiary education.
