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In the Face of Corruption Allegations Nsfas Stands by Its Direct Payment System



In the Face of Corruption Allegations Nsfas Stands by Its Direct Payment System

In the Face of Corruption Allegations Nsfas Stands by Its Direct Payment System. The National Student Financial Aid Scheme (NSFAS) currently supports over a million students through comprehensive bursaries. However, these deserving beneficiaries encounter obstacles hindering their access to much-needed financial aid.

In the Face of Corruption Allegations Nsfas Stands by Its Direct Payment System

Concerns Impacting Higher Education

The National Student Financial Aid Scheme (NSFAS) has expressed apprehension regarding the disruptions experienced by universities and Technical and Vocational Education and Training (TVET) colleges. These disruptions stem from the recent introduction of a novel NSFAS allowance payment system and the ongoing issue of student defunding.

Insight from NSFAS Briefing

In an effort to provide clarity, NSFAS held a media briefing, shedding light on the current status of the financial aid scheme. Officials addressed various challenges, including those related to the new payment system, student defunding, and the optimization of student accommodations.

Rationale Behind New Payment Method

Ernest Khosa, Chairperson of the NSFAS Board, acknowledged concerns about implementing the new direct allowance payment system. However, he emphasized that this system was introduced following extensive consultations with stakeholders. The new payment method aims to combat fraudulent activities and ensure the efficient disbursement of allowance payments to students.

Enhancing Student-Centric Services

Nongogo, speaking on behalf of NSFAS, further explained that the new system is aligned with a student-centric approach. Its goal is to streamline the array of processes associated with NSFAS services, reducing confusion and providing students with more direct and accessible information about their funding status.

Challenges and Erroneous Funding

Many of these initiatives were in response to calls from sector stakeholders, particularly students themselves, who highlighted the frustrations stemming from fragmented processes. Khosa reaffirmed NSFAS’ commitment to supporting deserving students while addressing past instances of funding being mistakenly allocated to ineligible recipients.

  • Over the past few years, approximately R5 billion has been wrongly disbursed to undeserving students by NSFAS.

Concerns Raised by Universities

The Universities of South Africa (USAf) Board has expressed reservations about the direct disbursement of allowances by NSFAS, noting concerns about untested implementation at universities. They advocate for a phased approach to implementing the new system to mitigate potential risks.

Additionally, USAf highlights the need for proper integration between university and NSFAS databases to avoid the continued disbursement of funds to ineligible students. Reports indicate that over 50,000 students (14%) still require onboarding, leading to financial stress and potential eviction threats.

Addressing Allegations

NSFAS CEO Andile Nongogo addressed allegations of corruption related to their work with the Services Sector Education and Training Authority (SSETA). Nongogo clarified that such questions were inappropriate for the NSFAS briefing, noting that SSETA consistently received clean and unqualified audits during their tenure.

In conclusion, while NSFAS continues its critical support of more than one million students, ongoing challenges require innovative solutions to ensure the effective disbursement of bursaries and prevent further disruptions within the higher education landscape.

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