In a bid to address mounting grievances over delayed allowances within the National Student Financial Aid Scheme (NSFAS), Minister Blade Nzimande announced last week the dissolution of the entire NSFAS Board. This decisive move aims to grant the Minister more direct oversight, following weeks of intensifying calls for action from university students nationwide.
Through various formal engagements, as Minister, I have consistently raised my concerns and unhappiness with the outgone NSFAS Board, about the inability of NSFAS to carry out and implement some of the most basic responsibilities allocated to it by myself as Minister and the Act.
The controversy surrounding NSFAS allowances has been a persistent issue, despite the scheme's exponential growth in supporting students over the past decade. While efforts to modernise operations and establish direct channels of communication with students have been made, accessing timely assistance has remained a challenge for many.
Recent reports from campuses across the country have highlighted the depth of frustration, prompting student organisations to mobilise for a national shutdown of universities. Concerns extended to TVET College students, potentially amplifying the scale of protests.
Minister Nzimande, although not directly responsible for NSFAS operations, faced mounting pressure as the public face of the issue. Student grievances often manifested as calls for his resignation, epitomised by the chant, "Blade must fall!"
In response, the Minister swiftly took action, establishing a task team to address outstanding allowance issues and issuing public apologies for the inconvenience caused to affected students. However, the most significant move came late on Thursday, with the dissolution of the NSFAS Board and the appointment of an Administrator to assume control.
This isn't the first time such measures have been taken. Previously, an Administrator oversaw NSFAS operations in 2020, demonstrating a recurring need for direct intervention.
The root of the current crisis can be traced back to the contentious decision to engage inexperienced 'fintech' companies for allowance disbursement, a move later reversed by the Board. However, the transition couldn't occur seamlessly, exacerbating existing challenges.
One of the recommendations of the Werksmans report, released in 2023, was that NSFAS should terminate the contracts of the four service providers Ezaga Holdings, Coinvest Africa, Norraco Corporation, and Tenet Technologies.
While NSFAS indicated that they would be terminating the contracts of service providers, they anticipated legal challenges from service providers. This meant that from April 2024, millions of rands will be given to these service providers to facilitate direct allowance payments to students.
While the legal process is underway, the Board has decided that, in the transitional period, these direct payment service providers continue to onboard and disburse allowances to students.
Nzimande said the board’s failure to terminate these contracts was a major contributing factor to their dissolution.
The inability to fully implement the recommendations of the Werksmans Report, key among which is the termination of the contracts of the direct payment service providers, who had been appointed irregularly.
Nzimande added that the board's consistent failure to distribute student allowances has not only caused undue stress for students and their families but has also jeopardised the stability of several TVET colleges and universities.
The consistent inability to oversee the payment of student allowances timeously by management, which has resulted in unnecessary stress for students and their parents, and also continues to threaten the very stability of some of our TVET Colleges and Universities
Minister Nzimande's decision, backed by a forthcoming Government Gazette, aims to bring legal clarity to the administrative overhaul. Additionally, a media briefing scheduled for Sunday promises further insight into the Minister's strategies for NSFAS reform.
While student unions cautiously welcomed these developments, emphasising the need for continued reform to fulfil NSFAS's mandate, concerns linger over the immediate impact on students awaiting allowances.
The dissolution of the NSFAS Board represents a critical juncture in addressing systemic deficiencies. However, the Minister's ultimate success will be measured by tangible improvements in student support and the restoration of trust in the aid scheme. As thousands of students rely on NSFAS for their educational pursuits, swift and effective action remains imperative to safeguard their futures.
