Minister Blade Nzimande removes the NSFAS board while students continue to experience payment issues

Minister of Higher Education and Training Blade Nzimande has requested Parliament not to publicly release an explosive report. Picture: Oupa Mokoena/IOL

The Higher Education and Training Minister, Blade Nzimande, has dissolved the board of the National Student Financial Aid Scheme (NSFAS) and placed it under administration. The decision was announced in the Government Gazette on Friday. NSFAS chairperson Ernest Khosa resigned before the board was dissolved, as many beneficiaries continue to face non-payment issues. Khosa was allegedly linked to irregular tenders NSFAS issued to four service providers to manage payments to NSFAS beneficiaries.

Nzimande's spokesperson, Veli Mbele, stated that the minister will take the nation into his confidence on the rationale for this decision and take whatever action he deems necessary. Khoza resigned willingly and had not been pushed out. This is one part of NSFAS and will not have a material impact on the running of NSFAS.

Nzimande said he was "aware of, and deeply disturbed by the recurring problem of non-payment of student allowances" by NSFAS. He announced several "decisive steps" to address NSFAS's failure to pay students, including establishing a task team that has already begun working and will visit TVET colleges and universities where students are experiencing problems. NSFAS had paid more than R511-million to students in the latest payment cycle, but not all TVET colleges and universities have complied with the NSFAS deadline of 15 March 2024 for the submission of student registration data to facilitate the payment of allowances.

The Department of Higher Education (DA) shadow minister of higher education, Chantel King, called on Nzimande to resign over the crisis at NSFAS. She said that the non-payment of student allowances has left many students hungry, without funds for food, and even facing the real risk of being put out on the streets. The DA calls on Minister Nzimande to follow suit and resign with immediate effect.

The South African Students Congress (Sasco) said that this landmark decision marks a significant victory for the general student population within the public education sector who rely on NSFAS funding to pursue their academic aspirations. Student groups said the controversial companies were still responsible for paying their allowances. They reiterated their call for the termination of contracts with FinTech companies responsible for administering student allowances and stressed the urgent need for structural transformation at an administrative level within NSFAS.

In a statement on Thursday, the EFF Students’ Command (EFFSC) noted with great concern that NSFAS was still using corrupt and incompetent third-party service providers to distribute student allowances. The EFFSC questioned why the four service providers were still distributing NSFAS funds to beneficiaries despite findings that aspects of their contracts were irregular.