In August 2024, a major amendment to the terms of reference for the National Student Financial Aid Scheme (NSFAS) Administrator was announced, effectively shortening their tenure.
NSFAS comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and TVET colleges. The funding includes tuition and registration fees as well as several allowances for food, accommodation, and learning materials.
Freeman Nomvalo was appointed as NSFAS Administrator in April 2024 by former Higher Education Minister Blade Nzimande following the dissolution of the NSFAS board. Nzimande placed NSFAS under administration at that time after it failed to pay student allowances.
Several other factors also contributed to Nomvalo's appointment, including the lack of institutional capacity and the board's failure to implement the recommendations of the Werksmans Report.
The Werksmans Report laid bare the serious challenges impacting students who did not receive critical allowance payments for food and accommodation, mainly due to irregular service provider contracts.
According to the amendment issued by newly appointed Minister Dr Nobuhle Nkabane, the Administrator’s term, initially set for two years, will now end on either 31 December 2024 or upon the appointment of a new NSFAS Board.
This change replaces the original clause that extended the Administrator’s governance, management, and administration of NSFAS for a full two-year period.
During this interim period, the Minister is responsible for appointing a new Board that reflects a diverse range of skills and expertise. If the new Board is established before the end of the year, the Administrator will play a key role in ensuring a smooth transition.
Student Unions Welcome NSFAS Organisational Renewal
The Economic Freedom Fighters Students' Command (EFFSC) has acknowledged the amendments to the Terms of Reference of the NSFAS Administrator and welcomed the accelerated organisational renewal at NSFAS.
An organisation without executive leadership is destined for failure. It is for this reason that the EFFSC aligns with the decision to fast-track the organisational renewal of NSFAS, through the appointment of a Board, which must appoint an ethical Chief Executive Officer (CEO) and the collective Executive Management of the national funding scheme.
The EFFSC argues that NSFAS has long been mismanaged, with greed and self-enrichment taking precedence over the needs of vulnerable South African students. They also pointed out vacancies in key managerial positions, which they believe have contributed to NSFAS’s failure to deliver financial aid and fulfil its mandate effectively.
NSFAS has been plagued with vacancies in key and senior managerial positions. These structural deficiencies have led to the funding scheme's inability to deliver on its mandate to effectively provide financial aid to South African students.
SAUS Criticism
The EFFSC further urged Minister Nkabane to scrutinise the overdue termination of the South African Union of Students (SAUS) term of office. They contend that the current SAUS leadership no longer represents the majority views of Student Representative Councils (SRCs) in South Africa.
The EFFSC controls an overwhelming majority of Institutions of Higher Learning in South Africa. Therefore, any consultation with the illegitimate and felonious current leadership of SAUS must be considered a waste of time, and any consensus reached on such a platform will be rejected with contempt by all SRCs of the EFFSC.
The student union announced plans to prepare for a National Student Governance Symposium to discuss the restructuring, direction, and transformation of Higher Education.
