Nsfas losing over R21m a year to corruption

The National Student Financial Aid Scheme (Nsfas) is bleeding over R21m a year to corruption, higher education minister Blade Nzimande has revealed.

The scheme has been plagued by several issues, including not paying students on time and not providing proper accommodations.

CEO Andile Nongongo was dismissed last year amid allegations of corruption in its direct payment system. Nzimande dissolved its board earlier this month following allegations of maladministration.

Responding to a recent parliamentary question, Nzimande revealed that “approximately R21 446 855 was lost” to fraud and/or maladministration each year since 2017.

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This would put the total lost since 2017 to more than R128.5 million.

Despite promises to deal with corruption in the scheme and 14 matters being referred to police, Nzimande admitted that no stolen money had been recuperated so far.

“None of the funds have been recovered. Some of these matters are still being investigated by law enforcement agencies,” Nzimande said.

Watch Minister Nzimande calling for patience with the scheme:

Nsfas ‘collapsing’

The SA Union of Students (SAUS) last year warned that the scheme was on the brink of collapse.

Spokesperson Asive Dlaniwa said it was on autopilot and failing students.

Universities ‘should take over’

The Independent Institute of Education (IIE) told The Citizen recently that universities should take over the troubled scheme.

“The fact is that the corruption within Nsfas is so endemic and structural that changes to the board will accomplish nothing. The issues are deeply embedded in the organisation’s procedures, culture, and perhaps even its informal norms and practices.

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“Nsfas transformation requires more than cosmetic changes. It demands a commitment to transparency. A willingness to confront corruption head-on. And the establishment of robust systems,” managing director Dr Linda Meyer said.