The Ministry of Higher Education and Training has defended the governance and administration costs of the National Student Financial Aid Scheme (NSFAS), saying the current administration has adopted a leaner and more cost-effective technical support model than previous governance structures.
In a statement issued on Thursday, the Ministry said public scrutiny of the expenditure of public funds is both legitimate and necessary but stressed that discussions should be based on verified facts and the applicable legal framework.
The Ministry noted that NSFAS, which administers more than R50 billion annually in student financial aid, has operated under different governance arrangements over the years, each carrying its own governance and management costs.
According to the Ministry, the current administration has appointed four specialist advisers to support the NSFAS Administrator in implementing a time-bound institutional stabilisation programme.
The combined annual remuneration of the four advisers amounts to about R9.9 million.
The Ministry said this compares with technical support costs of about R16.5 million a year under one previous administration and R19.6 million under an earlier administration. It added that remuneration for the former NSFAS Board and its committee structures totalled about R31 million during the 2025/26 financial year.
“These governance arrangements are not identical and should not be treated as direct like-for-like comparisons. Boards, administrations and statutory governance structures perform different functions,” the Ministry said.
It noted that the figures demonstrate that the current administration has adopted a smaller and less costly technical support structure, while ensuring access to the specialist expertise needed to execute its mandate.
“The purpose of these appointments is not to create additional bureaucracy, but to restore governance, strengthen financial controls, improve operational performance, modernise systems and rebuild institutional capability,” the Ministry said.
The Ministry also clarified that the appointment of the NSFAS Administrator and the approval of technical advisers are separate from the statutory process governing remuneration and allowances under Section 17C of the NSFAS Act.
It said the Minister of Higher Education and Training has engaged the Minister of Finance in accordance with the Act and will continue to cooperate with all lawful oversight processes.
The Ministry said the administration should be assessed on its ability to deliver measurable improvements in governance, accountability and service delivery to students, “not simply by the existence of technical advisors.”
It said the administration's priorities include restoring sound governance and internal controls; strengthening financial management and audit readiness; developing a sustainable student funding model; modernising NSFAS through digital transformation; improving applications, appeals and student support services; and rebuilding public confidence in the institution.
The Ministry reaffirmed its commitment to ensuring that the current administration restores the institution to stability and leaves behind a stronger, more accountable and more effective NSFAS. – SAnews.gov.za
