Note to Editors: Please see attached soundbite by Matlhodi Maseko MP
The Democratic Alliance (DA) will seek clarity from the Minister of Higher Education, Dr Nobuhle Nkabane, on clear action to address serious issues identified in the National Student Financial Aid Scheme (NSFAS) and to ensure accountability for those implicated.
This follows the late submission of NSFAS’s 2022/23 annual report – filed more than a year late – with alarming findings by the Auditor-General (AG). The AG has flagged nearly R60 billion in irregular expenditure between 2019/20 and 2022/23. A significant portion of this expenditure is linked to NSFAS’ dodgy direct payment partner contracts and payments to students.
NSFAS has long been plagued by mismanagement, leaving students vulnerable and underserved. While NSFAS Administrator, Sithembiso Freeman Nomvalo, is clearly working hard to turn the ship, there remain crucial questions on how NSFAS will tackle the root causes of discrepancies in its financial reporting, including discrepancies between amounts owed by and to institutions, and the funds due to students.
In particular, the DA calls for answers on:
- The steps NSFAS is taking to resolve the financial discrepancies highlighted by the Auditor-General, with timelines;
- Why NSFAS’ internal controls have continued to fail to prevent the recurrence of irregular and fruitless expenditure;
- The Scheme’s plans for a modern and efficient ICT system; as well as
- How the Department of Higher Education is will ensure more stringent oversight over NSFAS.
It is time for NSFAS to resolve these long-standing issues, as we cannot enter the 2025 academic year with scenes of students starving and camping on streets. Quality education and skills training must be available to all, and importantly, taxpayer funds to uplift young people must not be feeding troughs for the selfish and maligned.