JOHANNESBURG - The National Student Financial Aid Scheme (NSFAS) is facing serious scrutiny after an investigation found that more than 40,000 students were improperly funded at a cost of approximately R5.1 billion.
The findings are contained in an investigation by Public Protector Kholeka Gcaleka into the student funding scheme.
According to the investigation, the students were spread across 76 higher education institutions.
More than R2 billion of the money has since been recovered.
Gcaleka said information presented by the Special Investigating Unit to Parliament’s Standing Committee on Public Accounts was among the developments that raised concerns about NSFAS.
READ | Advisors' pay bonanza, suspension, instability: NSFAS told to get its house in order
Investigations conducted under Proclamation R88 of 2022 identified more than 40,000 students who had been improperly funded.
Taken together with complaints received by the Public Protector, engagements with stakeholders and other oversight findings, Gcaleka said the evidence pointed to possible systemic maladministration within NSFAS.
But the concerns go beyond improper funding.
The Public Protector’s report also highlighted administrative failures that have left students waiting for funding, allowances and, in some cases, their qualifications.
READ | Higher Education scrambles for answers after NSFAS administrator suspension
Gcaleka said independent reviews, including the 2021 Ministerial Committee of Enquiry, had already concluded that NSFAS had been operating in what was described as a near-permanent state of crisis.
Students have reported delays in receiving confirmation of their funding, payments of allowances and the processing of appeals. There have also been delays in settling tuition accounts with institutions.
For some students, these administrative problems have had serious consequences, including institutions withholding their qualifications because their accounts remained unsettled.
According to Gcaleka, the findings point to significant shortcomings in the way NSFAS has been administered and raise questions about the scheme’s ability to provide students with reliable and timely financial support.