Minister Nkabane delivered an address during the induction and orientation event for the new NSFAS board members. The board was appointed in February 2025 after months of work.
The previous board was dismissed by former Higher Education Minister Blade Nzimande due to funding challenges and administrative inefficiencies, which often led to delayed allowance disbursements and frustrated students. Concerns about corruption and mismanagement further eroded public trust.
The previous NSFAS board was dissolved due to its inability to carry out and implement some of the most basic responsibilities allocated to it.
This failure refers to their inability to implement the recommendations of the Werksmans Report, which advised terminating the direct payment service providers who were irregularly appointed.
"The consistent inability to oversee the payment of student allowances timelessly by management has resulted in unnecessary distress for students and their parents and continues to threaten the stability of some of our TVET colleges and universities."
Nkabane, who was appointed as Higher Education Minister in 2024, stated that upon assuming her role, she was tasked with ensuring NSFAS fulfils its mandate.
When I was appointed for this position… someone said to me, even if other things are additional, what I want you to do is clean the system, is to make NSFAS, is to ensure it meets the mandate.
NSFAS manages an annual budget of approximately R50 billion, funding students from poor and working-class backgrounds to obtain tertiary education qualifications through bursaries and student loans.
Minister Nkabane urged NSFAS board members to ensure the scheme operates efficiently and effectively addresses student needs.
Addressing board members, she emphasised that their appointment was based on their expertise. Over 200 nominations were received for consideration, 60 of which held a PhD qualification.
When you get into that organisation, turn around that organisation, review the culture, review the strategy and make sure it works, and make sure that it does not leave anyone behind.
The Minister underscored the importance of ethical leadership, financial accountability, and operational efficiency in restoring public confidence in NSFAS. Corruption concerns ultimately led to the dismissal of the previous board members and service providers.
Nkabane said, "Whatever steps and decisions you take, you must understand that it is going to compromise your career, If you are not going to be ethical in whatever decisions you take".
One of the first major challenges the new board must address is implementing a funding mechanism for the missing middle. NSFAS recently introduced student loans to support this category of students.
The Minister stated that while funding is available for missing-middle students, NSFAS has not yet progressed in implementing a structured approach.
The board is also tasked with improving NSFAS’ financial management, as the scheme has consistently received qualified audits from the Auditor-General of South Africa.
Minister Nkabane noted that three board members have backgrounds in Chartered Accounting. Along with Chief Executive Officer Waseem Carrim, who is also a Chartered Accountant, they are expected to stabilise NSFAS’ finances.
The responsibility to resolve all these challenges rests on our shoulders.
Additionally, the board must fill vacancies within the scheme, ensure allowances are paid on time, and re-establish the call centre to address student inquiries efficiently.
