The National Student Financial Aid Scheme (NSFAS) is still cagey to speak about the R14m erroneously paid out to an accounting student at the Walter Sisulu University earlier this year.
NSFAS’s Chief Executive Officer, Mr Steve Zwane, told the Portfolio Committee on Higher Education and Training that a lot of young people who would not have possibly graduated from university, were now able to access university education through NSFAS. “A lot of young people have access to the higher education but we remain facing a number of challenges. One of the challenges we faced this year is the issue regarding the R14m payout to a student,” said Mr Zwane.
“There is now an expensive forensic investigation and it’s hard to go into the details of it as that could compromise the investigation if we reveal information into that matter,” he said.
Members quizzed NSFAS on a number of issues including repeat findings, TVET (technical and vocation education and training) colleges funding, student allowances, the underspent R2.5bn, challenges related to the implementation of student-centred model, and cash flow challenges at the entity.
Committee member, Prof Belinda Bozzoli, said it seemed NSFAS was on a path to reform but sought clarity on difficulties associated with implementing the student-centred model. “The underspent R2.5bn is quite a lot of money and students could have benefited from this. How many students could have been supported through this sum, why is it not spent, and what do you intend doing with it next year?” Prof Bozzoli asked.
Committee member, Ms Julie Killian, said the Committee was optimistic that NSFAS was getting a system in place to providing a service to middle-class and poor students. “The underspent R2.5bn is such a vast amount and must be questioned. NSFAS cannot have a surplus in this fund if we have so many needy students out there who would have benefited. This is really disconcerting and we need further explanation. There has to be a proper reasoning for what is at the root for all of this. The total amount spent on student loans is significantly skewed on money spent on students at university and technical and vocation education and training (TVET) students. TVET education is not cheap because of the need for quality equipment to train students,” Ms Killian said.
She said the Committee should demand a report on how NSFAS will address the audit shortcomings as identified by the Auditor-General.
The Chairperson of NSFAS, Mr Sizwe Nxasana, said the R2.5bn related to the processes within NSFAS, and some had to do with migration and may have affected the disbursements. “These were not issues that depended on what NSFAS could or could not do, they had to do with an abnormal situation that was there at the time,” he said.
He also said they have asked the Department of Higher Education and Training (DHET) to move the funds to the DHET general, so it could be available for use to fund students. “A lot of that funding had been rolled over to the DHET general, but that process takes time,” he said.
NSFAS and the Council for Higher Education are in Parliament to present their annual reports.
Mr Nxasana said the year under review had been a milestone year, as NSFAS was able to fully migrate to the student-centred model. “There has been some instability in the sector, we had challenges in implementing the model but we are pleased that the annual report is unqualified,” he said.
By Sibongile Maputi
18 October 2017
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