NSF stipend delays put spotlight on project management failures

The National Skills Fund (NSF) is facing criticism for ongoing stipend payment issues that are impacting hundreds of young people in an artisan and aviation training program. The Portfolio Committee on Higher Education and Training received an update from the NSF, discussing the payment of stipends to beneficiaries of a program previously run by Phila Jordan Capital (PJC).

These payment delays have left vulnerable young people struggling to afford essentials like accommodation, food, and transport while they are attending training. Committee Chairperson Tebogo Letsie emphasized that delayed payments affect more than just individual beneficiaries, as they place them under immense pressure and threaten their ability to continue with the program.

The original PJC project was approved at R353.99 million for training 800 beneficiaries under the Artisan Development Programme. However, the NSF terminated its agreement with PJC on May 26, 2026, due to persistent non-compliance. The fund alleged that PJC relocated beneficiaries without approval, disrupted learning, and incurred unaccounted expenditures.

As of August 2026, only 757 beneficiaries had received their April stipends, while 701 were paid in July. The August stipend was due by September 11, and two groups of beneficiaries remained unpaid for April and July due to document reconciliation issues.

The NSF also reported that May and June stipends had not been paid. A legal opinion suggested that payment could be considered fruitless and wasteful expenditure. Letsie questioned the NSF's accuracy in reporting stipend payments, arguing that the project manager should have known whether beneficiaries were paid and maintained regular contact with them.

According to the NSF, PJC relocated beneficiaries in January and April without proper approval, causing destitution for some and disruption of accommodation, transport, and attendance problems. The fund then appointed Denel Technical Academy to rescue the project, which had a budget of R170.04 million for 761 beneficiaries. Among them, 557 were in apprenticeship programs, and 204 were in work-integrated learning.

The transition from PJC to Denel created implementation gaps such as difficulties with onboarding, contract signing, physical verification, and the Basic Accounting System. Denel provided interim assistance for stipend payments and accommodation while finalizing registration and fund-transfer processes. The committee emphasized that the NSF remains responsible for managing and overseeing the project, questioning why problems were being attributed to third parties.

They believed that inadequate NSF project management was a central issue and that warning signs had been missed as early as January and February when PJC failed to meet its obligations. The committee recommended a visit to the affected beneficiaries alongside the Minister of Higher Education and Training and the NSF to hear directly from them.

The NSF's recovery plan includes stabilizing the Denel project, improving monitoring, ensuring consistent stipend payments, and finalizing financial reconciliations. Completion of the stabilization process is expected by the end of October.