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Published on 2024-04-11 22:39:43
Higher Education and Training Minister Blade Nzimande made a significant decision on Thursday to dissolve the board of the National Student Financial Aid Scheme (NSFAS) and place it under administration due to ongoing issues with non-payment to beneficiaries. The decision was announced at a meeting on Thursday, with the dissolution taking immediate effect and set to be published in the Government Gazette on Friday.
The chairperson of NSFAS, Ernest Khosa, resigned on Thursday prior to Nzimande’s announcement. Khosa’s resignation came amidst allegations of involvement in irregular tenders issued by NSFAS to four service providers for managing payments to beneficiaries.
Regarding the decision, Nzimande’s spokesperson, Veli Mbele, clarified that the minister took the action to dissolve the board and place the institution under administration. He emphasized that the minister will provide further details on the rationale behind the decision in a media briefing, considering that the board reports to the minister as the shareholder.
Mbele confirmed that Khosa voluntarily resigned and that his departure would not significantly impact NSFAS operations, especially in terms of financial support to students.
Prior to dissolving the board, Nzimande expressed concern about the recurring problem of non-payment of student allowances by NSFAS. He outlined decisive steps to address the issue, including the establishment of a task team that has already begun working to address payment delays and visits to affected TVET colleges and universities.
The minister highlighted that NSFAS had disbursed over R511 million to students in the latest payment cycle but faced challenges due to non-compliance by some institutions with deadlines for submitting student registration data, leading to sporadic student protests.
In response to the situation, DA shadow minister of higher education, Chantel King, called for Nzimande’s resignation, holding him accountable for the systemic failures within NSFAS and the Department of Higher Education that have led to student hardships.
Sasco, a student organization, welcomed the decision to dissolve the NSFAS board, calling it a victory for students reliant on NSFAS funding. They also called for further reforms within NSFAS, including the termination of contracts with service providers and structural changes to address administrative inefficiencies.
The EFF Students’ Command also raised concerns about NSFAS’s continued engagement with allegedly corrupt service providers despite irregularities in their contracts. They highlighted the impact of payment delays on students and emphasized the need for a more efficient and transparent system within NSFAS.
Overall, the dissolution of the NSFAS board and the subsequent administrative changes signal a significant shift in addressing the challenges facing the financial aid scheme and ensuring timely and effective support for students in higher education.
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