Minister Calls for Criminal Charges in NSFAS Scandal

In a recent development, the South African Minister of Higher Education, Blade Nzimande, has made some significant recommendations regarding the ongoing National Student Financial Aid Scheme (NSFAS) controversy. This controversy centers around the alleged fraudulent activities of certain students and their parents, who are believed to have illegitimately benefited from the scheme. Let’s delve into the details of this latest development and the broader implications it may have.

Criminal Charges Proposed

Minister Nzimande wasted no time in addressing the situation. Speaking at a briefing, he urged NSFAS to take a bold step. He recommended implementing a 24-hour call center and initiating criminal and legal action against all individuals, both students and parents, who have allegedly defrauded NSFAS. This move signifies a strong stance against those who have taken advantage of the system.

Unveiling the Investigation

Nzimande reassured the public that NSFAS has been proactive in investigating these allegations. He stated, “We are not hiding anything. NSFAS has undertaken an investigation on its own to make sure that the allegations being made are investigated.”

Rethinking Bank Charges

Apart from addressing the alleged fraud, Minister Nzimande has also directed NSFAS to reconsider the bank charges imposed on beneficiaries. Currently, four service providers handle the disbursement of student allowances. A monthly bank charge of R12 has been applied, excluding money transfer costs to other banks. Nzimande has called for a comprehensive review of these bank charges, with a focus on reducing costs for the beneficiaries. The final determination on this matter will be made by the NSFAS board.

The Role of NSFAS

The National Student Financial Aid Scheme plays a crucial role in supporting higher education in South Africa. It provides bursaries to students from economically disadvantaged backgrounds who are pursuing their studies at universities and technical vocational education and training (TVET) colleges. This assistance is vital in ensuring that access to higher education is not restricted by financial constraints.

Controversial Allowance Disbursement

One aspect of the NSFAS controversy that has drawn widespread criticism is the method of allowance disbursement. The appointed service providers, including Tenet Technology, Coinvest Africa, eZaga, and Norraco Corporation, have come under fire for their handling of student allowances. Beneficiaries face a R12 bank fee deduction from their R1,650 allowance, and cash withdrawals incur additional charges. A lost card replacement carries a R50 fee, and a R60 fee is levied for card delivery.

CEO Under Scrutiny

The recent turmoil has also led to significant personnel changes within NSFAS. The CEO of the organization, Andile Nongogo, was placed on leave of absence due to allegations made against him during his previous role at the Services Sector Education and Training Authority (SSETA). To investigate these allegations and review procurement systems and processes, advocate Tembeka Ngcukaitobi and attorney Sandile July were appointed by the NSFAS board.

Transparency in Procurement

Minister Nzimande emphasized the importance of transparency in the procurement process. He mentioned that he is awaiting a final report on the investigations into the appointment of the four companies responsible for allowance disbursement. These investigations are being conducted independently to ensure impartiality.

Supporting NSFAS

While addressing these challenges and controversies, Minister Nzimande expressed his commitment to the integrity and effectiveness of NSFAS. He provided directives to the board to improve various aspects of the organization, including:

• Implementing a modern information communication system for seamless mandate delivery.
• Reviewing all processes, operations, and the allowances disbursement model.
• Ensuring overall governance and management design align with NSFAS’s mandate.
• Establishing a new performance management and accountability framework to foster a high-performance culture within the organization.

Additionally, the minister stressed the importance of prompt responses to inquiries and better stakeholder, media, and communications relations.

The ongoing situation involving NSFAS and the alleged fraud by certain beneficiaries is a matter of great concern for higher education in South Africa. Minister Nzimande’s recommendations, along with ongoing investigations, signal a commitment to addressing these issues and maintaining the integrity of the financial aid system. As the situation continues to develop, it remains essential to ensure that deserving students receive the support they need to pursue their education without disruption.