GOVERNANCE FAILURES: NSFAS ‘has failed its mandate and left students paying the price’
The Public Protector has found prima facie evidence of systemic maladministration at the National Student Financial Aid Scheme, citing governance failures and delays that have harmed students and left some unable to access their qualifications.
Newswire report reveals systemic governance failures at the National Student Financial Aid Scheme (NSFAS) in South Africa, resulting in dire consequences for students' education and livelihoods. Public Protector Advocate Kholeka Gcaleka found prima facie evidence of governance failures, leading to improper funding of over 40,000 students across 76 higher education institutions, amounting to an estimated R5.1-billion. More than R2-billion has since been recovered.
The investigation uncovered multiple instances of systemic maladministration, including delayed funding confirmations, allowance payments, and accommodation challenges, causing students food insecurity, housing instability, and unsafe living conditions. The failures also prevented students from obtaining their academic certificates, hindering their ability to secure employment.
Gcaleka recommended that within 90 days, the Higher Education Ministry and vice-chancellors must reform institutional debt recovery policies to prevent withholding of academic qualifications. Additionally, the NSFAS Board must submit a comprehensive digital modernisation plan within 30 days to establish system interfaces with universities, home affairs, and SARS.
The investigation revealed that NSFAS, a primary vehicle for assisting poor and working-class students, has suffered persistent governance and administrative failures for years. The scheme has been placed under administration three times in the past eight years, with the latest administration forcing Minister Buti Manamela to reinstate board members who sued him over the dissolved board. This instability has resulted in a "near-permanent state of crisis" at NSFAS, despite repeated interventions and leadership changes.
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