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Minister Nzimande Urges Legal Action Against NSFAS Fraudsters



Minister Nzimande Urges Legal Action Against NSFAS Fraudsters

Minister Nzimande Urges Legal Action Against NSFAS Fraudsters. In a recent development, the Higher Education Minister, Blade Nzimande, has proposed the initiation of criminal charges against students and their parents who have unfairly benefited from the National Student Financial Aid Scheme (NSFAS). This call comes on the heels of revelations that numerous NSFAS beneficiaries have been stripped of their funding due to allegations of manipulation within the system.

Addressing the Issue

During a briefing on Tuesday, Minister Nzimande emphasized the need for action: “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.” This stern stance reflects the government’s commitment to upholding the integrity of the financial aid scheme.

Bank Charges Under Scrutiny

In addition to addressing fraud, Minister Nzimande has directed NSFAS to reevaluate the bank charges imposed by the four service providers responsible for disbursing student allowances. Initially, NSFAS negotiated a R12 monthly bank charge, excluding money transfer costs to other banks. However, the minister is eager to explore avenues for further cost reduction to benefit the scheme’s beneficiaries.

“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,” Minister Nzimande explained.

NSFAS: A Lifeline for Students in Need

The National Student Financial Aid Scheme plays a pivotal role in providing bursaries to students from financially disadvantaged backgrounds. These students pursue higher education at South Africa’s 26 universities and 50 technical vocational education and training (TVET) colleges. However, the recent controversies surrounding NSFAS have raised concerns about its operational efficiency.

Ongoing Investigations and Reforms

Notably, the NSFAS board took action by placing the CEO, Andile Nongogo, on leave of absence following allegations related to his previous role at the Services Sector Education and Training Authority (Sseta). Advocates Tembeka Ngcukaitobi and Sandile July were appointed to investigate these allegations and review the entity’s procurement processes.

Minister Nzimande highlighted the importance of transparency: “We are not hiding anything. NSFAS has undertaken an investigation on its own to make sure that the allegations being made are investigated.” While the board has not pronounced Nongogo guilty, he has been asked to step aside pending the outcome of the investigation.

A Commitment to Improvement

The higher education minister is actively involved in the process of reforming NSFAS. He has issued directives to the board to implement key changes, including the redesign of the information communication system, a comprehensive review of processes and allowances disbursement, an overhaul of governance and management practices, and the implementation of a performance management and accountability framework.

Minister Nzimande is also pushing for improved stakeholder engagement and communication, emphasizing the importance of addressing challenges promptly.


Minister Blade Nzimande’s call for legal action against those who have taken advantage of NSFAS and his commitment to reforming the organization demonstrate the government’s dedication to ensuring fair access to education for all deserving students. These actions are pivotal in preserving the integrity of South Africa’s higher education funding system.

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