Early September the National Student Financial Aid Scheme (NSFAS) briefed the parliamentary committee on its disbursement of allowances to students, the roll-out of its new direct-payment system, and its query system.
Chairperson of the committee Nompendulo Mkhatshwa (ANC) opened the meeting with harsh words for the funding scheme. “This entity, with the mandate it has, should be the best run entity in the country … but right now it is not. It’s an embarrassment.”
This comes amid recent backlash NSFAS has been receiving from students and stakeholders alike regarding several issues, particularly delays in distributing student allowances, a problematic banking system as well as the alleged incorrectly defunding of beneficiaries.
The committee expressed strong criticism towards the NSFAS contact centre, its portal, and query systems, citing significant inefficiencies.
They further emphasized the urgent need for resolution, as these issues were negatively impacting students. Some members even suggested that the staff responsible for these systems should not receive payment until improvements were made.
The NSFAS Board and management were warned of potential consequences if the situation persisted.
NSFAS to improve communication systems
In addition, there was also call for the bursary scheme to establish a communications unit to enhance its ability to communicate effectively. It was noted that students often felt uninformed, and their questions went unanswered.
Members expressed surprise that even their own inquiries were ignored by NSFAS.
NSFAS lacks the decency even to respond to Members’ queries. Stakeholders do not trust NSFAS. NSFAS needed to centralise its communication. The hearsay information was exhausting. The Committee must be able to trust NSFAS, and there was a trust deficit between the Committee and NSFAS.
Mkhatshwa urged the Board to ensure that NSFAS improves its communication capabilities. She pleaded with the Board and management to tell the Committee the truth about everything, and what the Committee could do to make things easier for NSFAS.
NSFAS CEO Investigation
Last month, NSFAS announced that its CEO Andile Nongogo had taken “a leave of absence” while the board investigated allegations against him related to his conduct in awarding bids at NSFAS.
Nongogo faces corruption allegations related to his previous work at Services SETA (SSETA). These allegations further raise concerns about potential improper practices in the awarding of bids at NSFAS.
Parliament also sought transparency regarding the investigations and requested details on the allegations surrounding the direct payment system and the capacity and appointment of service providers.
Giving an update on the situation the NSFAS board noted that it enlisted Werksman Incorporated to investigate allegations against the CEO and review procurement systems and processes. The investigation was currently underway.
Furthermore, challenges with the new NSFAS student-centered model were also discussed, particularly regarding centralized services without a physical presence at institutions. The Committee stressed the importance of finding a balance between centralization and decentralization.
NSFAS had just recently come out of administration, and members wanted stability in the entity. The Committee had therefore not embarked on an inquiry into NSFAS, because it wanted to give the new Board and management an opportunity to fix things.
Response from NSFAS
Responding to issues raised by the committee, Ernest Khosa, Chairperson of the NSFAS board, acknowledged all the challenges that NSFAS had been experiencing.
He highlighted the Board’s response to these issues and emphasised that the wheels had not come off at NSFAS. “I want to emphasise this point: in our books, he (Nongogo) has not been found guilty of anything.”
We are conscious of all the challenges NSFAS is facing. We have seen the protests and read articles in the media. We have constantly received instructions from our shareholders for greater accountability.
The committee gave NSFAS a two-week deadline to present a plan for how it will resolve the issues raised in the meeting.
