The financial mismanagement within the National Student Financial Aid Scheme (Nsfas) is driving students to make desperate decisions, according to Tebogo Letsie, the chairperson of the Portfolio Committee on Higher Education. Letsie’s sharp criticism of Nsfas came as the institution’s failures in disbursing funds led students to turn to dangerous alternatives, including engaging in relationships with older men or resorting to criminal activity to survive. He highlighted the tragic human cost of Nsfas’s persistent dysfunction, stating, “When students don’t have money coming from Nsfas, they have no choice but to enter into wrong things.” Letsie’s remarks shed light on the severe consequences of the financial instability plaguing the organisation, which has left students in limbo, unable to plan their futures.
The financial woes of Nsfas have been compounded by systemic issues, including significant irregular expenditure and ineffective management practices. In the 2021/22 financial year, Nsfas reported R1.9 billion in irregular expenditure, and while the figure improved to R136 million in 2022/23, the organisation’s struggles are far from over. Nsfas officials have acknowledged that they lack the necessary expertise to meet their responsibilities, with Administrator Freeman Nomvalo admitting that obsolete technology has left students uncertain about their funding status. This technological deficiency, combined with persistent leadership instability and vacancies in critical positions, has made Nsfas a difficult and unreliable system for students to navigate.
Despite these ongoing challenges, Nsfas is working to improve its processes. Nomvalo pointed to efforts to overhaul the organisation’s IT systems, which will eventually allow for better internal communication and engagement with external institutions. However, the organisation’s performance has been abysmal, achieving only seven out of 17 performance targets. The delay in submitting critical financial reports, including the 2023/24 annual statement, has only exacerbated the lack of trust in the system. For students relying on these funds to further their education, the chaos at Nsfas has left their futures uncertain, adding to their frustrations.
The Minister of Higher Education and Training, Dr. Nobuhle Pamela Nkabane, expressed her frustration with the ongoing performance issues at Nsfas. While she acknowledged the allocation of R160 million to improve the system in 2021/22, Nkabane noted that these measures had yet to yield tangible results. In response to the governance and management issues plaguing the scheme, she outlined potential steps, including the appointment of an independent assessor, a forensic investigation, and a referral to the Special Investigating Unit (SIU). However, these measures will take time, and students and stakeholders continue to suffer in the interim.
Letsie has vowed to hold Nsfas accountable and ensure that the organisation’s shortcomings are addressed. He voiced his discontent with the lack of action from the SIU, despite investigations into the higher education and Nsfas sector having been initiated as far back as 2021. He expressed his concern that the audit findings for Nsfas were “horrible,” and his frustration with the lack of progress on these cases was palpable. Letsie’s call for accountability echoed the sentiment that public officials must be held responsible for the mismanagement of public funds, and that softer approaches are no longer acceptable. He questioned the integrity of public officials who treat their roles as a joke and vowed to pursue those involved in financial mismanagement aggressively.
Looking ahead, Letsie warned that the future of Nsfas would depend on the results of these investigations and the consequences faced by those responsible for the financial chaos. He has made it clear that the Portfolio Committee on Higher Education will continue to press for answers, and that the issue of irregular expenditure must be addressed head-on. With over R2 billion in reported irregular expenditure, Nsfas faces a long road ahead in rebuilding its credibility and ensuring that students no longer have to suffer the consequences of its failures. The fight for accountability has only just begun, and the pressure on Nsfas and its leadership to act decisively is mounting.
