Higher Education Minister Blade Nzimande assures that the troubled National Student Financial Aid Scheme (NSFAS) will continue to operate smoothly despite the appointment of an administrator.
Minister Nzimande reassures smooth operation of NSFAS under administrator
Blade Nzimande, the Minister of Higher Education, reassured that the appointment of an administrator won’t impact the National Student Financial Aid Scheme’s (NSFAS) operations.
He stated that his choice to assign Sthembiso Nomvalo to supervise NSFAS was aimed at enhancing its functionality.
According to The Sowetan Live, Nzimande stated that Nomvalo would handle daily tasks, lead NSFAS, and tackle its operational issues comprehensively.
This will not affect the functioning of NSFAS, so people must not panic. The administrator will oversee forensic investigations on the allegations arising out of Outa [Organisation Undoing Tax Abuse] as well as many other investigations,” he said.
Last week, Nzimande declared the board’s dissolution, citing NSFAS’s inability to fulfil fundamental duties as the reason for placing it under administration.
The scheme has encountered numerous issues, leaving thousands of students without allowances for weeks and some facing eviction from their accommodations due to NSFAS’s delayed payments to institutions.
Nzimande blamed the previous board members for the mess at NSFAS, leading to delays in paying student allowances.
He stated that the board needed to follow the recommendations from the Werkman’s Attorney’s report about appointing four Fintech companies to distribute students’ allowances, which was found improper.
“I engaged the board on several occasions on various solutions, including a turnaround strategy, which has not been achieved within agreed timelines,” he said.
The board faced criticism for failing to fulfil essential duties, like paying student allowances on time, causing undue stress.
Former board member Lisa Seftel acknowledged the minister’s decision to dissolve the board, citing mismanagement within the organisation.
She recognized that some of the Werksmans report’s recommendations needed to be solved, highlighting deficiencies. Seftel conceded that the organization was not in good condition, supporting the minister’s decision to dissolve the board as appropriate.
Nzimande explains decision to dissolve NSFAS board
On Sunday, Nzimande outlined the rationale behind his decision to dissolve the National Student Financial Aid Scheme (NSFAS) board and install an administrator.
According to TimesLive, the decision was prompted by the failure to pay student allowances, leaving many stranded without accommodation and other necessities.
Nzimande said the board was unable to implement the recommendations of the Werksmans’ report fully, which include the termination of contracts with some of the service providers.
This, according to Nzimande, includes the direct payment service providers which, according to the Werksmans’ report, were appointed irregularly.
“I must say, I raised this in December that steps must be taken to remove these service providers and that hasn’t happened. Also, the constant inability to oversee payment of students’ allowances timeously by management has resulted in unnecessary stress for students and parents,” said Nzimande.
He highlighted the inability to submit a correct annual report to parliament and manage the final close-out report of NSFAS from an old scheme.
Additionally, there was a failure to address significant capacity deficiencies, including the malfunctioning call centre.
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