By Johnathan Paoli
The Standing Committee on Public Accounts (Scopa) has voiced its disappointment regarding the National Student Financial Aid Scheme (NSFAS) and its ongoing challenges in providing complete financial statements to Parliament.
This issue has persisted for several years, with significant delays attributed to poor compliance from universities and TVET colleges.
Higher Education Minister Nobuhle Nkabane has highlighted that only 50 out of 76 institutions submitted the necessary information for the 2023 academic year, further delaying NSFAS’s annual report.
Nkabane emphasised her intention to penalise institutions that failed to provide critical data.
“I’m going to write to universities and TVET institutions and advise them that I intend to impose penalties on those who withhold critical data from NSFAS,” she saidon Tuesday.
The financial health of the NSFAS has come under scrutiny, especially amid a backdrop of escalating costs related to private student accommodation.
Nkabane noted that the government currently spentapproximately R20 billion annually on private accommodation, a figure deemed unsustainable given budget constraints.
“We need to come up with a strategy or review our model regarding private student accommodation,” she said.
The NSFAS’s 2022/23 financial report is expected to be tabled in Parliament a year later than mandated, while the 2023/24 report is due to be submitted to the Auditor-General by the end of October.
NSFAS administrator Freeman Nomvalo assured that next year’s financial report would be on time.
“The biggest part of the preparation will be completed by December 2023,” he said.
The meeting also addressed ongoing investigations by the Special Investigating Unit (SIU) into corruption and maladministration within higher education institutions.
The SIU has reportedly recovered R857 million as a result of these investigations, with R477 million returned directly to the NSFAS.
The recouped capital largely relates to unallocated funds linked to students who either changed institutions or deregistered.
Despite some improvements, including the termination of staff implicated in misconduct, Scopa members expressed concern over systemic inefficiencies within the scheme.
Nkabane expressed her doubts about functionality, referencing issues such as deceased learners receiving benefits and discrepancies in identity number registrations.
The briefing highlighted that NSFAS had met only nine out of its 39 performance targets, raising alarm among committee members.
The fund’s adverse audit findings were primarily due to issues like double dipping, students funded for multiple institutions simultaneously and lapses in data submission.
In an effort to enhance oversight, Nkabane announced plans to appoint a new NSFAS board and establish regional offices in KwaZulu-Natal, Gauteng, and the Eastern Cape, along with mobile offices at various higher education institutions.
As the country grapples with high youth unemployment rates, the full functionality of NSFAS is seen as crucial to fostering a skilled workforce capable of driving economic growth.
The ongoing challenges, however, cast a shadow over the scheme’s ability to fulfill its mandate.
The minister concluded by reiterating the importance of a stable NSFAS.
“A stable NSF will produce a labour force with critical skills to assist our economic growth and help us become a capable developmental state,” she said.
With pressure mounting from both Parliament and the public, the NSFAS faces an uphill battle to restore confidence in its operations and ensure that the vital financial aid reaches the students who need it most.
INSIDE EDUCATION
