Education activist calls for stricter NSFAS financial controls

Education activist Hendrick Makaneta has called on the National Student Financial Aid Scheme (NSFAS) to implement more stringent funding processes to prevent irregular payments. His plea comes in the wake of recent findings by the Special Investigating Unit (SIU), which reported the recovery of R2 billion from overpayments made to higher education institutions.

SIU Findings and Concerns

The SIU’s investigation uncovered widespread financial irregularities within NSFAS, including incorrect payments to approximately 40,000 students between 2018 and 2021. These errors, which range from overpayments to the disbursement of funds to ineligible students, have raised serious questions about the scheme’s financial oversight.

While the recovery of R2 billion represents a step towards rectifying past mistakes, the scale of the problem has prompted calls for deeper reforms. Makaneta emphasized the importance of ensuring that NSFAS funding reaches the right students without delay or misuse.

Makaneta’s Recommendations

Makaneta has urged NSFAS to overhaul its financial management systems and adopt stricter measures to prevent future irregularities. He stressed the importance of transparency and accountability in the disbursement of public funds meant for student education.

“We further call on NSFAS and the Department of Higher Education to implement stricter financial controls to prevent irregular payments in the future. Transparency and efficiency must be at the heart of student funding to ensure that every cent reaches the intended beneficiaries,” Makaneta said.

One of Makaneta’s key recommendations is the adoption of more advanced digital verification systems to ensure that payments are made to eligible students only. He also suggested regular audits and the publication of funding reports to promote public accountability.

Impact on Students

Irregular payments have serious implications for students, particularly those from low-income backgrounds who depend on NSFAS for their educational expenses. Delays or errors in funding can result in students being unable to pay for tuition, accommodation, or other essential needs.

Makaneta expressed concern over how financial mismanagement can disrupt the lives of students. “Every error in funding can potentially derail a student’s academic journey. It is imperative that NSFAS ensures smooth, error-free disbursements to support the dreams of students relying on financial aid,” he said.

Several students have also voiced their frustrations. One university student, Thabo Mthethwa, described the anxiety caused by delayed payments. “I’ve had to wait for months to get my accommodation paid because NSFAS said they overpaid someone else. It’s stressful and unfair,” he shared.

NSFAS and Government Response

NSFAS has acknowledged the challenges and pledged to review its financial systems. In a recent statement, the scheme indicated that it would cooperate fully with the SIU and implement recommendations to improve financial controls.

The Department of Higher Education has also committed to working closely with NSFAS to ensure that financial aid disbursements are accurate and efficient. Minister of Higher Education Dr. Blade Nzimande recently emphasized the government’s zero-tolerance stance on corruption and mismanagement in public institutions.

“We will not tolerate any misuse of funds meant for students. Those responsible for irregular payments will be held accountable, and we will ensure that systems are strengthened to prevent future errors,” Nzimande said.

Need for Broader Reforms

Experts have suggested that the NSFAS irregularities reflect broader challenges in the country’s higher education funding system. Beyond technical improvements, there is a need for greater collaboration between NSFAS, educational institutions, and students to foster a culture of transparency and accountability.

Civil society organizations have also called for more student engagement in NSFAS decision-making processes. By involving students in oversight committees, they believe that the scheme can gain valuable insights into how funding issues impact students directly.

Conclusion

The irregular payments uncovered by the SIU have highlighted the urgent need for reform within NSFAS. With calls from activists like Makaneta and commitments from NSFAS and government officials, there is hope that the scheme can adopt more robust financial controls to prevent future errors. Ensuring accurate and timely disbursements will be critical to supporting South Africa’s students and fostering greater confidence in the country’s higher education system.