A significant amendment to the terms of reference for the National Student Financial Aid Scheme (NSFAS) Administrator was announced in August 2024 effectively cutting short their appointment.
NSFAS comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and TVET colleges. The funding includes tuition and registration fees as well as several allowances for food, accommodation, and learning materials.
Freeman Nomvalo was appointed as NSFAS administrator in April 2024 by former Higher Education Minister Blade Nzimande following the dissolution of the NSFAS board. At the time, Nzimande placed NSFAS under administration after it failed to pay student allowances.
Several other factors led to the appointment of administrator Nomvalo including lack of institutional capacity and the board's failure to implement the recommendation of the Werksmans Report.
The Werksmans Report laid bare the serious challenges impacting students who did not receive critical allowance payments for food and accommodation, mainly due to irregular service provider contracts.
According to the amendment published by newly-appointed Minister Dr Nobuhle Nkabane, the Administrator's current term, originally set for two years, will now conclude either on 31 December 2024 or upon the appointment of a new NSFAS Board.
This change replaces the initial clause that extended the Administrator’s governance, management, and administration of NSFAS for a full two-year period.
During this interim period, the Minister is tasked with appointing a new Board that reflects a diverse range of skills and expertise. Should the new Board be established before the end of the year, the Administrator will play a crucial role in facilitating the transition.
Student Unions Welcomed NSFAS Organisational Renewal
The Economic Freedom Fighters Students' Command (EFFSC) has noted the amendments of the Terms of Reference of the NSFAS Administrator and welcomed the fast-tracking of organisational renewal at NSFAS.
An organisation without executive leadership is destined for failure. It is for this reason that the EFFSC aligns with the decision to fast-track the organisational renewal of NSFAS, through the appointment of a Board, which must appoint an ethical Chief Executive Officer (CEO) and the collective Executive Management of the national funding scheme.
The EFFSC argues that NSFAS has long been mismanaged, allowing greed and self-enrichment to take precedence over the needs of vulnerable South African students.
They highlighted the vacancies in key managerial positions, which they argue have contributed to NSFAS's failure to deliver financial aid and fulfil its mandate effectively.
NSFAS has been plagued with vacancies in key and senior managerial positions. These structural deficiencies have led to the funding scheme's inability to deliver on its mandate to effectively provide financial aid to South African students.
SAUS Criticism
The EFFSC further called for Minister Nkabane to scrutinise the long-overdue termination of the term of office of the South African Union of Students (SAUS).
They argued that the current student leadership of SAUS no longer represents the majority view of Student Representative Councils (SRCS) in South Africa.
The EFFSC controls an overwhelming majority of Institutions of Higher Learning in South Africa. Therefore, any consultation with the illegitimate and felonious current leadership of SAUS must be considered a waste of time, and any consensus reached on such a platform will be rejected with contempt by all SRCs of the EFFSC.
The student union said they will prepare for a National Student Governance Symposium to reflect on the restructuring, direction, and transformation of Higher Education.
