LISTEN | Nzimande wants students who unduly benefited from NSFAS to be charged

Higher education minister Blade Nzimande has recommended that criminal charges be laid against students and parents who unduly benefited from the National Student Financial Aid Scheme (NSFAS).

He was speaking after revelations that thousands of NSFAS beneficiaries have been defunded, some of whom are accused of having fooled the system into approving them for funding. 

Speaking at a briefing on Tuesday, Nzimande said: “I said [to NSFAS], implement a 24-hour call centre and initiate criminal and legal action against all students and parents who have been defrauding NSFAS.” 

Nzimande said he had asked NSFAS to relook the bank charges levied by four service providers that have been contracted to pay student allowances. 

He said he was briefed that NSFAS negotiated for a R12 monthly bank charge “which excluded money transfer costs to other banks”. 

“I then directed that NSFAS relook at the entire bank charges regime to find possible measures to further reduce these costs for our beneficiaries. I await the board’s final determination in this regard.”

The financial aid scheme provides bursaries to students from poor and working-class families who are studying at the country’s 26 universities and 50 technical vocational education and training (TVET) colleges. 

NSFAS appointed Tenet Technology, Coinvest Africa, eZaga and Norraco Corporation to disburse allowances to students through a direct payment system that has sparked a huge outcry from students.

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Besides having a R12 bank fee deduction from their R1,650 allowance, a cash withdrawal will cost R10 plus R2.50 for every R100 withdrawn. A R50 replacement fee is levied for lost cards while R60 is levied for delivering cards.  

The NSFAS board placed the CEO of the financial aid scheme, Andile Nongogo, on leave of absence last month over allegations made against him while he was at the helm of the Services Sector Education and Training Authority (Sseta). 

The board appointed advocate Tembeka Ngcukaitobi and attorney Sandile July to investigate the allegations against Nongogo and to review the entity’s procurement systems and processes. 

Meanwhile, Nzimande said that he was awaiting a final report on the NSFAS investigations into the process of appointing the four companies “after public allegations on the process of their appointment”. 

“We are not hiding anything. NSFAS has undertaken an investigation on its own to make sure that the allegations being made are investigated. 

“As a result of the allegations and the alleged claimed involvement of the NSFAS CEO, I have noted the decision by the board to place Mr Nongogo on leave of absence while investigations by an independent legal firm are ongoing into these allegations.” 

He said they were not saying that Nongogo was guilty, adding: “The board has said ‘just step aside while we investigate this matter’.” 

He said he had given additional directives to the board members after he met them and was given an initial report on all the challenges it was facing. He said he directed the board to immediately:

• Implement the redesign of the information communication system which leverages modern technologies and capabilities to deliver the NSFAS mandate seamlessly; 
• Review all their processes, operations and allowances disbursement model;
• Review their overall governance and management design to ensure the full execution of their mandate; and         
• Implement a new performance management and accountability framework in a bid to establish a high-performance culture within the organisation. 

“I have said to NSFAS, respond in the shortest possible time and every single enquiry must be responded to,” Nzimande said, adding that he had asked them to improve stakeholder, media and communications relations. 

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