‘Dissolving NSFAS board will not wipe out corruption’

The head of a private college has cautioned that the leadership changes Minister of Higher Education and Training Dr Blade Nzimande was effecting at the Students Financial Aid Scheme (NSFAS) might not be enough to root out corruption.

Dr Linda Meyer, the Managing Director of the IIE’s Rosebank College, said this after Nzimande recently dissolved the board of directors of NSFAS.


Nzimande dissolved the board due to, among other reasons, the “consistent inability to oversee the payment of student allowances timeously”. This delay by NSFAS management  has resulted in unnecessary stress for students and parents. It also continues to ”threaten the very stability of some of our TVET colleges and universities”.

He appointed Sithembiso Freeman Nomvalo, South Africa’s former Accountant-General, as the NSFAS administrator.

A complete overhaul is required

“Simply reshuffling personnel without addressing the underlying issues will yield limited results. A complete overhaul is required. It will address a lack of transparency, inadequate systems, and political interference,” said Meyer.

The futures of young South Africans will continue to be compromised if leaders continue to  implement knee-jerk half-measures, Meyer said.

Meyer went on to say lack of transparency makes the scheme susceptible to corruption. Inadequate and outdated systems are prone to manipulation. And political interference has resulted in kickbacks and favouritism.

Transformation requires more than cosmetic changes

“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. The NSFAS transformation requires more than cosmetic changes.”

She said the key to turning the scheme around is implementing robust and transparent systems. And also ensuring ethical governance.

”Stakeholders need to demand accountability and transparency. This to ensure that the next generation of students has a real chance at accessing quality higher education.”

Universities, tertiary institutions are also victims of NSFAS corruption

“Universities are already owed in the region of R19.2-billion arising from student debt. Yet even after last year’s fracas, the same four entities are still dispensing (or indeed not dispensing) funds to students despite being cancelled at the end of last year.”

She added that students and universities were victims of corruption and mismanagement at the NSFAS.

“Students are starving and sleeping on the streets. Yet responses often involve going on strikes against the very universities that are also victims of NSFAS corruption and mismanagement,” said Meyer.

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