STUDENT FUNDING FIASCO
NSFAS blames universities for failure to pay students as promised
The scheme claims it’s managed to pay just under half of last year’s outstanding allowances, suggesting universities are to blame for late submissions.
Monday, 15 January – the deadline the National Student Financial Aid Scheme (NSFAS) gave itself to finally pay what it claims to be about 20,000 students their outstanding allowances from last year — came and went, with no explanation, or apology.
Then, the press conference scheduled for 18 January to discuss outstanding payments and other issues was summarily cancelled, and a press release was released late at night blaming universities for tardiness in filing registration data.
But student organisations are not buying the excuses, calling out the scheme for its “perpetual inability” to do its job – to provide financial support for needy students.
NSFAS claims that of the 20,000 outstanding allowances, 9,128 allowances have been “successfully resolved”, with the remainder being prioritised and processed as part of the 2024 normal disbursement procedure.
Universities blamed
In a statement issued late on Thursday night, NSFAS attributed these remaining outstanding allowances to delays in the submission of registration data by universities. The scheme said it would engage with universities for a speedy resolution.
NSFAS now says, having considered the impact of late submission of student data on the disbursement of allowances, the fund expects that in future, the details of all eligible students studying for funded, approved qualifications to be submitted by no later than 31 March of the academic year.
“As soon as institutions have received the approved eligibility criteria and conditions for financial aid guidelines, they should submit registration information speedily to allow for proper processing of allowances.
“Universities will not be permitted to change allowance types submitted within a particular academic term without the change being approved by NSFAS prior to such a claim being submitted, and the necessary budgetary approval obtained.”
On 4 January, the Organisation Undoing Tax Abuse (Outa) released a bombshell report on corruption at NSFAS, naming four suppliers that had allegedly been awarded corruption-tainted contracts to manage direct payment contracts: Coinvest Africa, Tenet Technology, eZaga Holdings and Norraco Corporation.
‘Kickbacks’
In response to allegations in the Outa report that it was linked to kickbacks from suppliers, the SA Communist Party denied receiving kickbacks and Higher Education and Training Minister Blade Nzimande threatened legal action.
NSFAS’s former CEO, Andile Nongogo, who was fired in October last year, lost his labour court bid on 9 January challenging his dismissal, and Mandla Makhubela was appointed in his place.
Professor Lourens van Staden was appointed as acting chairperson in Ernest Khosa’s place after Khosa was also linked in the report to alleged kickbacks from suppliers.
Tshegofatso Ntumba, a director of Coinvest and the wife of Thula Ntumba, one of the men in the Outa audio recordings, told News24 they had been inundated by requests for comment.
“We, as Coinvest, have no knowledge of any previous donations to any political party and have not been approached by any political party or individual for a donation,” she said.
Coinvest has failed to respond to Daily Maverick’s requests for comment.
Another supplier, eZaga, has denied involvement in alleged kickbacks, saying it has sought legal advice after claims that its contract was going to be cancelled by NSFAS.
Charges
The DA has pressed criminal charges against Nzimande.
NSFAS says it has already received a wave of new applications for 2024, with 1,406,189 received as of 15 January 2024. It says it expects more than a million more applications before 31 January 2024.
The SA Union of Students said in a Facebook post it was appalled at the “regrettable and perpetual inability” of NSFAS to deliver on its mandate and commitments, first made on 21 December to pay students their outstanding allowances by 15 January. “We must with regret inform the public that we have met with all stakeholders in the sector in preparation of the commencement of that academic year except the leadership [at] NSFAS, which has failed to honour our meetings.
“On 18 January we were scheduled to meet with the acting CEO and his team and mere hours before the meeting he pulled out and failed to honour the meeting.”
The organisation added it had written to the Minister of Higher Education to immediately remove “this inept excuse of an acting CEO”.
SA Students Congress (Sasco) president Vezinhlanhla Simelane said on Friday that Sasco did not support nor endorse any form of misappropriation or corruption of public funds.
Thursday’s announcement of the matric results signalled the beginning of one of the most difficult periods in higher education, as thousands of students seek accommodation and financial assistance for their studies. “It is disturbing to note that this takes place while other students are still waiting for their allocation [from NSFAS] … as the government has taken the decision to cut public spending in the higher education sector.
“Only 9,128 students have been paid; only 9,128 student issues have been resolved.”
Sasco is calling for the immediate payment of all outstanding allowances, before the closure of registration.
Previously, it threatened to pay the NSFAS offices a “revolutionary visit”.
It was uncertain whether the organisations were prepared to escalate their threats, as neither Sasco nor the SA Union of Students responded to requests for comment on Friday. DM
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Does SA have almost 2,500,000 students eligible for state funding… ?!?
Wt holy moly
That was going to be my question too….do the Maths. Were that the case, extrapolated back twelve months, then the outstanding payments ostensibly still due iro 2023 are, at 9000 odd, less than 0.1%. I don’t believe any of it!
It really seems we live in a socialist country given the amount the state is giving away for mahala..
A socialist country where >80% do not contribute but <20% cover the cost? If only 4% that get into University eventually get a degree is it time to really dig into root causes rather then keep throwing money at the symptoms?
Especially in an election year!
If NSFAS is going to blame universities for failing to pay students, why even have NSFAS as a separate body?
Since the main purpose of NSFAS ceased to be administering loans and instead gives outright bursaries, why not just give that money straight to universities, and cut out a layer of bureaucracy, the same way as other government subsidies are paid to universities?
If any university has faulty or fraudulent systems for managing government subsidies, the problem can be fixed at that university – and has to be fixed anyway to avoid other misspending.
What value does NSFAS add? They consume a big chunk of the funding on administration that effectively duplicates some functions of university financial aid offices, and there is no evidence that they add efficiency. So what is their purpose?
Philip, the answer you seek is in your question.
NSFAS, like a multitude of so called “governing bodies” set up by the ANC over the past 30 years of Kuktocracy is there first and foremost to consume a big chunk of the admin funding.
Of course it duplicates existing roles… that it exactly how it can employ cadres who cannot, will not and have not done any work other than consuming.
SARS collects your tax and funnels it to dozens if not hundreds of these “bodies”… the bodies consume and produce crap… both literally and figuratively… and the actual work is still done by the private sector.
This is the ANC gravy train at its finest and this is what has created and fuels most of our new middle class. There are thousands of ANC voters who always wanted “a job” but never wanted to actually work.
What you must understand, is that for most ANC voters.. “I want a job” really means “I want a title, a car, house and food allowance, a desk and smart clothing” but it rarely or almost never means “I want to work”
Also.. you CAN be fired from actual “work”… but you can never ever EVER be fired from a “job”
Entertainly put Matthew.
100% correct. Well said!
Wanting a job means an opportunity to steal money from whichever coffers are available. It’s both pathetic and devastating that so many people are willing to behave like this.
Incredible that a Student Organisation cannot pay students their allowances in the student year!!!
I thought money went directly to students not a 3rd party ?
Why has NSFAS paid only half of last year’s outstanding allowances ?
Does this late payment indicate a cash-flow problem rather than incompetence?
MUST they always lie, and blame someone else? Is it a culture thing, or what?
Your post should never have been approved given its racist inuendo. Also, where do you get off ridiculing someone for the misfortune of having suffered chronic acne at some point in his/her life. SHAME ON YOU!
The arch villain in all this nonsense must surely be the man in charge of Higher Education, ie Blade Nzimande. He stands accused of accepting kick backs from suppliers and he huffs and puffs about reserving the right to take legal action against Outa for exposing him. He does not have to reserve anything, it is his inalienable right to institute immediate action to clear his name. Why is he dithering about it if he is innocent as he claims? He maintains that his ‘good name’ (??) is damaged by the report but does nothing about it. This would appear to be a clear case of the dictum ‘qui tacet consentire videtur’ He who is silent seems to consent.
Meanwhile in Gauteng, Premier Panyaza Lesufi, ably helped along by Education MEC Matome Chiloane, is feverishly engaged in blatant vote-buying for the ANC by promising freshly minted matriculants university bursaries that are largely paid for by public funds with a little assistance from the private sector.
To paraphrase Henry II, “Who will rid us of these turbulent crooks?”
They have stolen the money, that is why it cant be paid over. R 44k for an umbrella, R 4500 for a t-shirt……. There is no money for the poor students. Let them eat cake…….
I think this is just the tip of the iceberg. Millions have probably been stolen or misappropriated by officials. So there is no money left to pay students and the NFSAS officials (most of whom would never get a job in the private sector) are working so hard at feathering their own nests that there is no time left to do their actual jobs. Just a whole bunch of comrades with no moral compasses who will be, no doubt, voting ANC in the next elections.
Always blame somand NEVER take responsibility is a motto of the ANC
They must hire the people who pay the kick backs and corrupt contracts to the tenderpreneurs to pay the students. They have no problem making those payments promptly. You never hear the corrupt saying they didn’t get their cut.
2.5 million bursary applications? What percent of those are based on merit and academic achievement without regard to race or creed? Then the bursaries would achieve something: actually helping people who have skills and aptitude to succeed. Why bursaries ‘free money’ rather than targeted at the most worthy? Universities are by definition elitist, for the best and brightest, not for everyone to attend riots about bursaries.
The anc cannot even give money away without illuminating their incompetence to manage ANYTHING they touch or force into their marxist socialist agenda.
Everyone in Anc Sacp and all supporters of the president are tainted. Resign enmass please. Prisons are waiting. Viva mk
Blade has passed his best before date. Needs to retire gracefully.