The National Student Financial Aid Scheme (NSFAS) Board was dissolved due to their inability to carry out and implement basic responsibilities, Higher Education Minister, Professor Blade Nzimande said on Sunday.
“Through various formal engagements, as minister, I have consistently raised my concerns and unhappiness with the outgone NSFAS Board, about the inability of NSFAS to carry out and implement some of the most basic responsibilities allocated to it by myself as minister and the Act,” he said.
He said the inability relates to fully implementing the recommendations of the Werksmans Report, key among which is the termination of the contracts of the direct payment service providers, who had been appointed irregularly.
As well as the “consistent inability to oversee the payment of student allowances timeously by management, which has resulted in unnecessary stress for students and their parents, and also continues to threaten the very stability of some of our TVET colleges and universities,” he said.
It also includes the inability to resubmit a corrected annual report to Parliament; the inability to manage and finalise the close-out report; the inability to address “very serious and glaring capacity deficiencies” within the organisation, including the call centre, which is still not functional, Nzimande said.
The board also had a “consistent inability to respond to student queries” in a timeous and efficient manner; and the inability to consult on the guidelines for the Missing Middle Funding and the related inability to implement the Missing Middle solution, he said.
“In an attempt to resolve these challenges or mitigate their impact, as minister, I engaged the board on several occasions on various solutions, including a turnaround strategy, which has not been achieved within agreed timelines,” Nzimande said.
“Despite several engagements with myself, NSFAS continues to face serious challenges in its business processes, IT systems, capacity, and policies and controls,” he said.
“All of this has not just impacted the well-being of students negatively but has also brought serious reputational damage to NSFAS itself, the Department of Higher Education and Training and government.”
In statement released on April 11, the department announced that in a meeting with the NSFAS, the Nzimande communicated his decision to dissolve the board.
Nzimande said that through various formal engagements he raised concerns with the outgone NSFAS board about the inability of NSFAS to carry out and implement basic responsibilities allocated by himself and the National Student Financial Aid Scheme Act.
However, NSFAS continues to face serious challenges in its business processes, IT systems, capacity, and policies and controls.
The Minister said that all of this has impacted the well-being of students negatively and brought serious reputational damage to NSFAS as well as the Department of Higher Education and Training and government.
Nzimande also touched on the appointment of Sithembiso Freeman Nomvalo as the new administrator for NSFAS.
According to Nzimade, the mandate of the new administrator ranges from taking over of the governance, management, and administration of NSFAS starting from April 12, to ensuring the effectiveness of the loan scheme for the Missing Middle.
The new administrator’s mandate will also include the finalising of funding decisions and outstanding payments, ensuring the reconciliation of funding data between universities, TVET colleges and NSFAS and to overseeing the opening of the 2025 online applications process amongst other things.
Nomvalo will report to the Minister of Higher Education and Training or to his delegated officials and submit a written progress report every three months.
According to Nzimande, the dissolving of the NSFAS board will not affect the normal functioning of NSFAS, including all payments that have to be made.
IOL News