Universities South Africa (USAf) has expressed its support for key decisions taken by the National Students Financial Aid Scheme (NSFAS). These decisions include the termination of contracts with four direct payment service providers, the NSFAS CEO being fired, the initiation of disciplinary inquiries for staff involved in wrongdoing, and a thorough review of the NSFAS supply chain management policy.
NSFAS board chair Ernst Khosa briefed the media last week to reveal findings of an investigation into allegations regarding the appointment of direct payment service providers.
The Investigation found that there may have been possible relationships between key individuals including NSFAS CEO Andile Nongogo and the Fintech companies appointed to pay allowances directly to students.
It was also revealed that there was active involvement of the CEO in the presentation to the Bid Evaluation Committee and potential conflicts of interest in the appointment of service providers.
The investigation specifically focused on irregularities related to Bid NO. SCMN022/2021, which involved the appointment of service providers for direct payments. The report also has several other issues including a lack of a feasibility study and amendments to the bid specifications
Dr Phethiwe Matutu, CEO and Spokesperson of USAf emphasised the importance of these actions, considering NSFAS's past failures in conducting due diligence on its service providers. They stressed the importance of transparency and accountability, stating that the USAf Board is closely monitoring the outcomes of these processes, particularly those related to the NSFAS CEO and staff misconduct.
Matutu expressed concern over the policies and systems both within and outside NSFAS that allowed misconduct to occur. They explained that the ultimate goal is to ensure that the educational journeys of financially needy and academically deserving students are not further disrupted.
The hope is to enable all NSFAS-funded students to complete the 2023 academic year without uncertainty.
One notable point of contention has been the implementation of a new payment system. NSFAS disregarded USAf's recommendation in November 2022 to pilot the preferred mode of payment in a select few institutions before a full-scale rollout.
Matutu called on NSFAS to reconsider its approach, learning from its previous mistakes and implementing the project in a more informed manner.
They noted that the premature full-scale implementation had led to significant disruptions, including student protests at eight universities in 2023, causing irreparable damage to institutional infrastructure and hardships for students due to service provider inefficiencies.
Matutu reaffirmed the USAf Board's commitment to the idea that a well-functioning student financial aid system is essential in realising the dreams of financially disadvantaged students who might otherwise be unable to access higher education.
A functional and well-governed NSFAS can further the higher education transformation agenda by promoting inclusivity in access, retention, and success.
Matutu stressed that the success of NSFAS has wide-reaching implications for the entire post-school education and training sector, with over 1.1 million students benefiting from the scheme in 2023. Therefore, the timely restoration of normal administrative processes within NSFAS is imperative.
USAf says the higher education community, as well as students, will be watching closely as NSFAS takes these actions to restore confidence and integrity in the student financial aid system.
