Struggling NSFAS to get a full board by mid-October, says Minister Nkabane

Higher Education Minister Nobuhle Nkabane. (Photo: Gallo Images/Misha Jordaan)

10 Sep 2024

NSFAS has a budget of R54bn, but the struggling entity doesn’t have a board. It is trying to recover losses associated with governance issues and address student frustration over payment disbursements.

The National Student Financial Aid Scheme (NSFAS) should have a new board by October 2024, according to Higher Education Minister Nobuhle Nkabane. The aid scheme has been without a board since April.

Nkabane, with officials from the Department of Higher Education and Training (DHET) and NSFAS, briefed Parliament’s appropriations committee on Tuesday, 10 September 2024 on the challenges facing the aid scheme, which is meant to fund qualifying students for tertiary education.

nkabinde nsfas board Higher Education Minister Nobuhle Nkabane. (Photo: Gallo Images/Misha Jordaan)

However, NSFAS has made headlines in recent years for failing to fund students, acts of alleged corruption and chaotic governance. There are also issues around the disbursement of allowances for students at both universities and TVET colleges. These allowances cater for the buying of food, transportation and hygiene products.

More recently, Daily Maverick reported on staff backlogs and call centre problems, which emerged during a visit to the NSFAS offices in Cape Town, yet another site of controversy over its R2-million monthly rental.

Read more: NSFAS battles backlogs, staff and tech woes as MPs criticise R2m rent for swish Cape Town offices

On Tuesday, both Nkabane and NSFAS administrator Freeman Nomvalo addressed the committee. Nkabane said NSFAS was funding 1.1 million students this year and had a budget of R54-billion.

New board and outstanding audits

“I should announce a new board by October this year,” Nkabane told the committee.

NSFAS had been without a board since April when former higher education minister Blade Nzimande dissolved it and placed the aid scheme under administration.

Read more: NSFAS boss Freeman Nomvalo promises fresh processes and payment system by September

In July, soon after her appointment as minister, Nkabane issued a statement which amended Nomvalo’s contract as administrator to end on 31 December 2024 or until a board was appointed.

He would also be required to assist the new board if necessary. Nkabane said the board would focus on accountability and emphasise qualified candidates, with a master’s degree the minimum requirement.

She also told the committee, which deals with the spending of government departments and entities, that there were two outstanding annual reports from NSFAS. These are at present the focus of discussions between the Auditor-General and the department.

Nkabane said these would be “finalised before the end of the year”.

During the briefing, DHET director-general Nkosinathi Sishi said, “The sooner we get back governance the better.”

The aid scheme does not have a chief executive and a chief financial officer.

Read more: New Higher Ed minister committed to ‘rooting out corruption and maladministration in NSFAS’

‘Train smash’

Addressing the committee, Nomvalo said issues at the aid scheme included capacity, with employees having to deal with 180 funding applications each day, with plans in place for increased capacity.

Information and communications technology was also an issue with infrastructure outdated and vulnerable to errors and manipulations. NSFAS has been given an additional R119-million to fund ICT projects.

In the short term, NSFAS is in the process of terminating its deals with its direct payment partners, which caused frustration among students and led to court cases over contracts, which were alleged to have been unlawful.

In July, News24 reported that NSFAS wanted to appeal against an interdict from the Western Cape High Court which would have cancelled contracts with four service providers for direct allowance payments.

During the briefing, it also emerged that 85% of student accommodation payment issues have been resolved.

Several MPs took a similar stance on Tuesday: they were in support of NSFAS and its purpose, but as the DA’s Dr Mark Burke said, “NSFAS is a train smash.”

DA MP Kingsley Wakelin said the minister had his support, but questioned if this was “flogging a dead horse” as there should have been fresh ideas on the table. He called for a plan of action.

During the briefing, Nomvalo confirmed that applications for funding for the 2025 academic year would open next week.

NSFAS will appear in Parliament again on Wednesday evening. This time it will be at a meeting with the public accounts committee, following the previous meeting’s cancellation after Deputy Minister Buti Manamela did not show up, having sent an excuse only the evening before his scheduled appearance.

This caused frustration in the committee, including that of chair Songezo Zibi, who wrote to Deputy President Paul Mashatile about Manamela’s absence. DM

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