NSFAS gets 30 days to shake-off ICT limitations

The National Student Financial Aid Scheme (NSFAS) faces criticism as Public Protector Kholeka Galeta uncovers significant deficiencies in its ICT systems and administrative processes. In an investigation report, Galeta highlights that NSFAS's outdated and fragmented technology systems have led to inefficiency, delays, and poor service to students.

The Public Protector's findings come after the SIU reported overpayments, underpayments, and payments to non-existent students due to flaws in the ICT systems. The report also reveals that NSFAS struggles to resolve 80% of queries received due to its centralised Cape Town-based service and ineffective query-resolution arrangements.

The entity, which operates under the Department of Higher Education and Training, manages a near R50 billion annual budget for student financial aid. As part of the investigation, Galeta has instructed the NSFAS board to develop a comprehensive digital modernisation and systems integration plan within 30 days. This plan should encompass full integration with other institutions' systems, improved verification interfaces, strengthened fraud controls, and cyber security measures.

Additionally, the plan must eliminate duplicate applications and manual workarounds, enhance student communication, and establish specific milestones and funding requirements. The Public Protector's report also emphasizes the scheme's limited accessibility, particularly its inability to promptly address student concerns. NSFAS's performance issues have led to multiple administrations and suspensions of its administrator, with the recent dissolution of the board due to IT system challenges.

The chairperson of the Portfolio Committee on Higher Education and Training, Tebogo Letsie, emphasizes the need for the restored board to prioritize student welfare and address the identified weaknesses swiftly.