By Johannah Malogadihlare
THE National Student Financial Scheme (NSFAS) has introduced measures to streamline the funding scheme and cut costs in its efforts to turn its finances around.
NSFAS administrator Freeman Nomvalo said during a media briefing at Hatfield, in Pretoria that the scheme is making progress in terms of governance, management and administration.
Nomvalo said the scheme intends to eliminate the middleman to save on charges that render the disbursement and payment process for student accommodation costly, adding that NSFAS saves R21 per transaction by paying allowances directly into accounts of students in Technical and Vocational Education and Training colleges.
“We need to streamline that and make sure that it’s cost-effective and efficient and ensures that students and accommodation providers receive their monies or funds in time,” he said.
NSFAS terminated the contracts of eZaga, Noracco, Coinvest and Tenet Tech in May after an investigation by law firm Werksmans Attorneys and advocate Tembeka Ngcukaitobi, found irregularities in the awarding of the contracts.
The scheme has reportedly appointed auditing firms KPMG and BDO Global to help with problems facing the fund.
Nomvalo said the auditors are expected to help tackle backlogs following the scheme’s historical failure to pay accommodation as well as tuition fees and other allowances, leaving vulnerable students in the lurch.
Scheme beneficiary, Phologo Mantjane, expressed optimism at the new measures and said it will cut on both delays as well as additional charges.
“I think the measures that the NSFAS are using will work to every student’s advantage because they won’t wait longer for the money to reflect into their accounts and they will be saved from bank charges,” Mantjane said.
Another student, Lindiwe Moremi, said the proposed changes would put students at ease.
“It would be best for the NSFAS to take full control of paying students directly, we won’t have to worry about how we are going to complete our studies or whether the institutions will accommodate us in times where the middleman fails to pay in time,” Moremi said.
INSIDE EDUCATION
