Higher Education and Training Minister Buti Manamela has welcomed the Public Protector’s report highlighting systemic and longstanding inefficiencies at the National Student Financial Aid Scheme (NSFAS).
The Department of Higher Education and Training (DHET) said the issues identified in the report are not new and formed part of longstanding governance, administrative and operational challenges at the scheme that had been a matter of concern to the Minister.
According to the department, these challenges contributed to Manamela’s decision to place NSFAS under administration.
The findings are also consistent with concerns raised in a report submitted to the Minister earlier this month by the NSFAS Administrator, which identified a range of challenges requiring urgent intervention.
READ | NSFAS Administrator submits stabilisation plan to restore governance
In March, following a meeting with the Auditor-General of South Africa (AGSA) Manamela raised serious concerns about the scheme’s financial management and governance.
The Auditor-General had found a disclaimer of opinion, finding that NSFAS’s accounting records and supporting evidence were so inadequate that it could not determine whether the institution’s financial statements were reliable.
The department said the administration intervention, as outlined in the Government Gazette, was undertaken to stabilise the institution, strengthen its governance and financial management, address systemic weaknesses, and ensure that NSFAS is able to fulfil its fundamental mandate effectively.
“Measures to remedy the situation will continue to be explored. The administration of NSFAS forms part of a broader effort to restore stability, strengthen systems and ensure that the scheme is capable of delivering support to students,” the department said.
Manamela will continue to cooperate with the Public Protector as the investigation proceeds and will give due consideration to any further findings and recommendations arising from the process.
The department said the Minister’s intervention was guided by the overriding interests in the wellbeing of students and post-school education and training institutions.
“NSFAS exists to enable students who would otherwise not be able to afford higher education to access and participate in the post-school education and training system,” the department said.
The department said every intervention must ultimately contribute to ensuring that students receive the funding and complete support they need to access higher education without being hindered by unnecessary administrative failures.
The Minister reaffirmed his commitment to working with all relevant institutions to address the challenges at NSFAS and to ensure that the institution is strengthened for the benefit of all students. – SAnews.gov.za
