Barely three years after the term of the administrator ended, the National Student Financial Aid Scheme (NSFAS) is back in the spotlight amid allegations of tender corruption and widespread student protests over its new funding model.
But the recently appointed acting CEO is adamant there is no crisis at the funding scheme.
Masile Ramorwesi was appointed acting CEO after the board put the scheme’s CEO Andile Nongogo on special leave this week as it investigates allegations of tender corruption against him.
Ramorwesi, who was appointed chief financial officer at NSFAS in 2021, said the scheme’s management team and board of directors are technically equipped and committed to ensuring zero-tolerance for malfeasance of any kind.
The chartered accountant, who has 12 years senior management in the public sector as chief audit executive and chief financial officer, said the student protests against NSFAS’s new payment system are merely a reaction to change.
“For us this is more like the birth of an elephant. The new policies are good for the students. All we need to do is to correct all glitches that come with a new system,” he said.
Ramorwesi, who is a full member of the Institute of Internal Auditors of South Africa, said his priorities are to build internal capacity to implement the new policies. He said the implementation of the engagement and communication strategy with all stakeholders, including students and heads of institutions is critical.
“Another priority is to quantify and analyse the current wave of complaints and develop a prompt response. I also want to ensure that, all glitches notwithstanding, students receive their allowance and related support on time,” he said.
Ramorwesi said protests did not mean students were not happy. “If you look at the march to parliament last week, less than 1 000 students participated, yet we have over 100 000 tertiary beneficiaries in the Western Cape,” he said.
He said there were two sources of protests; the defunding of students and direct payments of allowances. “On the defunding of students; this action is a noble attempt by NSFAS to correct mistakes of the past and to comply with the law and policies. We defund students as soon as we realise they are not eligible. If we do not do this, we are in breach of the law.”
On the new direct payment system implemented through fintech companies eZaga, Coinvest, Norraco and Tenet Technology, Ramorwesi said students now know who to blame for the glitches.
“The new system of direct payment ensures that we take direct responsibility. The protest is directed at one entity and that is NSFAS.”
He said as the scheme was in the process of opening applications for the 2024, he was confident of the enhancements that had been made to review application data.
“We have, for instance, ensured formal collaborations with the department of home affairs and the South African Revenue Service to cross check the accuracy of application documentation. All our systems are geared towards ensuring that only deserving students get funding in terms of our policy guidelines,” he said.
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