Johnathan Paoli
THE National Student Financial Aid Scheme (NSFAS) has announced that progress has been made in dealing with the challenges surrounding private student accommodation in the post-school education sector, but that “unavoidable risks” remained which required further work.
Administrator for the scheme, Sithembiso Nomvalo, presented a report to the Portfolio Committee on Higher Education and Training on Tuesday on the progress made in resolving payments to private accommodation and resolving outstanding student appeals.
Nomvalo said that thus far, NSFAS has made payments totaling R1.6 billion in private accommodation at the pilot institutions, with R311 million to TVET Colleges and R1.297 billion to university accommodation providers.
He said that some of the private accommodations are not offering suitable housing, especially in rural areas and some students enter unfavourable contracts with landlords.
Nomvalo confirmed that the scheme had received 94 469 appeals and that 63% have been resolved, while 35 226 remain unresolved, but are expected to be finalised by the first week of September.
He said that he was in the process of initiating a review of the NSFAS organogram to ensure roles and responsibilities are aligned with organisational and strategic objectives.
In addition, he said NSFAS was finalising filling critical positions within the scheme, such as Chief Financial Officer and Chief Internal Auditor.
The committee welcomed the report on the progress, including the setting up of task teams for engagements around student accommodation with landlords being part of the process across the country in order to mitigate against possible risk of instability.
However, Committee chair Tebogo Letsie, while welcoming the report, criticised the failures of the scheme in dealing with the challenges.
Letsie said there was a need for a skills audit at the scheme that will assist in dealing with identifying unsuitable employees that contribute to creating a chain reaction that ultimately inconveniences students.
He said the scheme needs to ensure that it strengthens its ICT systems as a matter of urgency to curb student data falling into the wrong hands.
Letsie welcomed the admission by Nomvalo that NSFAS does not possess credible student data and that it was vulnerable to cyber-attacks.
More importantly, the chair called for a forensic investigation on the National Treasury funds that were given to the scheme to improve its ICT systems that were never improved, with criminal charges being brought against any implicated in the embezzlement of funds.
He said it was apparent the scheme is plagued by the inappropriate use of funds, which required investigating and correcting.
“NSFAS cannot claim not having enough money on its administrative budget to hire staff to solve problems of students while at the same time renting a building at a cost of around R2 million a month,” Letsie said.
He called for an intensification of oversight, and keeping the scheme accountable during its path to recovery.
“We are going to conduct oversight over NSFAS until things turn around and going forward, the committee will need to be provided with a monthly report on what the scheme is doing with appeals, payment of student accommodation and allowances,” the chair said.
Earlier in the year, Finance minister Enoch Godongwana disclosed the 2024 budget allocation for education, with R53.6 billion being earmarked for NSFAS alone, a portion of which was specifically set aside to assist in the development of ICT systems.
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