The National Student Financial Aid Scheme (NSFAS) is undergoing significant changes. Following the dissolution of the NSFAS board by former Minister Blade Nzimande in April, the scheme was placed under administration.
The Department of Higher Education (DHET) has announced that a new NSFAS board will be appointed by the current Minister, Dr Nobuhle Pamela Nkabane. This comes after months of the scheme being under administration.
In a statement released, the Minister said:
It is my intention as the Minister to restore governance of NSFAS through the appointment of a board, the Chief Executive Officer, the Chief Financial Officer and the Chief Audit Executive for strengthened accountability.
She continued to say, "In this regard, I will be taking the necessary steps to appoint the board, which shall appropriately reflect the diversity of skills and experience in the relevant and appropriate fields".
Originally appointed for a year, NSFAS Administrator Sithembiso Freeman Nomvalo's term will now end on December 31, 2024, or earlier if a new board is appointed. In such a case, Nomvalo will assist the board with the transition.
The period of appointment of the Administrator published under no 4722 in Government Gazette no 50482 of 12 April 2024, shall be earlier of either 31 December 2024 or any date when the new Board is appointed in terms of section 5 of the NSFAS Act, at which date, the appointment of the Administrator shall come to end.
Why the NSFAS Board Was Dissolved
Minister Nzimande cited the board's failure to meet its responsibilities as the reason for its dissolution. Issues included delayed student allowances, missed parliamentary reports, and ineffective management.
A key factor was the Werksmans report, which uncovered irregularities in a service provider tender. This led to contract terminations and further delays in allowance payments, causing hardship for students.
To streamline the process, NSFAS will now pay allowances directly to TVET college students' bank accounts, while universities will handle payments for their students.
Reasons for Placing NSFAS Under Administration
The decision to place NSFAS under administration aimed to improve the scheme's efficiency. By appointing an administrator, the Minister gained more direct control over NSFAS operations.
