Dr Blade Nzimande axed the National Students’ Financial Aid Scheme (NSFAS) board due to a series of failures that impacted negatively on the organisation and students’ wellbeing.
Failure to terminate irregular contracts
These include the inability to fully implement the recommendations of the Werksmans Report. Key among these was the termination of the contracts of the direct payment service providers, who had been appointed irregularly.
The management also consistently failed to oversee the timely payment of student allowances.
Higher Education and Training Minister Nzimande revealed this on Sunday during a media briefing at the GCIS Media Offices in Hatfield, Pretoria. Nzimande dissolved the NSFAS board and placed it under administration this week.
The purpose of the media briefing was for Nzimande to explain the reasons behind his decision to dissolve the board and place the body under administration.
Stop gap measures
Nzimande also used the media briefing to outline the implications of his decision, unveiling measures the department will be putting in place to ensure the continued functioning of NSFAS.
Nzimande appointed former head of the South African Institute of Chartered Accountants, Sithembiso Freeman Nomvalo, as the administrator for NSFAS.
During the media briefing, Nzimande said he also disbanded the NSFAS board due to its failure to resubmit a corrected annual report to parliament.
“The consistent inability to oversee the payment of student allowances timeously by management, which has resulted in unnecessary stress for students and their parents, and also continues to threaten the very stability of some of our TVET colleges and universities.
“[I dissolved the board] due to the inability to address very serious and glaring capacity deficiencies within the organisation, including the call centre, which is still not functional.
Threat to students
“The consistent inability to respond to student queries in a timeous and efficient manner; and the inability to consult on the guidelines for the missing middle funding, and the related inability to implement the missing middle solution,” said Nzimande.
“In an attempt to resolve these challenges or mitigate their impact, as minister, I engaged the board on several occasions on various solutions, including a turnaround strategy, which has not been achieved within agreed timelines,” said Nzimande.
Nzimande announced the roles and mandate of Nomvalo as the new NSFAS administrator.
Nomvalo’s functions, among others, include taking over the governance, management, and administration of NSFAS for a period of 12 months.
He will finalise all the necessary funding decisions and outstanding payments, including those relating to student accommodation. Nomvalo will also oversee the opening of the 2025 NSFAS online application process (both bursary and loan).
Report to minister every quarter
Nzimande said Nomvalo will report to him, and submit a written report every three months on the progress regarding his assigned roles and issues he has to deal with.
Nzimande said the dissolution of the board will not affect the normal functioning of NSFAS, including all payments that have to be made.
Nomvalo’s appointment was published in the Government Gazette and signed by Nzimande on Thursday.
Nzimande announced on Thursday evening that he had dissolved the NSFAS board and placed the entity under administration with immediate effect. He said the legal effects would be communicated on Friday in the gazette.
Nomvalo is the former accountant general at the National Treasury. He will take over the governance, management, and administration of NSFAS for a period of two years.
