NSFAS Claims No Crisis as Thousands of Unpaid Students Surface
The National Student Financial Scheme (NSFAS) has denied claims of an imminent collapse made by the South African Union of Students (SAUS). NSFAS states that it is currently undergoing a realignment and modernization process to better serve the needs of over one million students.
Addressing Allowance Delays and Modernization Efforts
Contrary to SAUS’s assertions that NSFAS has failed to disburse monthly allowances to over 70,000 students since May, NSFAS asserts that it is actively reviewing and refining all processes and operations related to its allowance models. The organization has recently hired additional employees to implement a student-centric model, with a direct payment system being a key component.
Implications for Underprivileged Students
SAUS highlights the seriousness of NSFAS’s alleged failure, particularly affecting students from poor and working-class backgrounds. The union expresses concerns about the potential academic and financial exclusion of these students, emphasizing the detrimental consequences that could perpetuate a cycle of poverty.
Ministerial Intervention and Investigation
In response to these concerns, Minister of Higher Education, Science, and Innovation, Dr. Blade Nzimande, has given the NSFAS board three weeks to submit a comprehensive report on its service delivery. This directive follows an investigation by Werksmans Attorneys into irregularities, poor governance, and mismanagement within the organization.
Nzimande emphasizes the need for close monitoring of crucial service delivery elements such as the timely payment of student allowances and the ongoing accreditation of student accommodation. The minister’s intervention highlights the government’s serious approach to addressing the situation and its aim for accountability and transparency.
Leadership Changes and Allegations
The recent removal of NSFAS CEO, Andile Nongogo, due to corruption allegations further complicates the situation. The Werksmans forensic report implicated Nongogo in corrupt practices, including a supposed relationship with a company involved in the new direct payment system. Nongogo, in turn, accuses NSFAS chairperson Ernest Khosa of unauthorized use of his electronic signature.
While Khosa denies these allegations, Nongogo has taken the matter to the labor court seeking reinstatement, claiming that his dismissal breached his employment contract.
Urgent Call for Ministerial Action
SAUS President Yandisa Ndzoyiya has given Minister Nzimande a 14-day ultimatum to address the perceived failure of the NSFAS board in providing effective oversight. The union urges the minister to ensure the prompt opening of 2024 NSFAS applications, expressing concern that the current state of affairs may jeopardize the start of the academic year.
As the situation develops, stakeholders await the comprehensive report from NSFAS and the minister’s response, hoping for swift and effective measures to address the challenges facing the financial aid scheme and the students it supports.
