Finance Minister Enoch Godongwana has launched a scathing attack on the National Student Financial Aid Scheme (NSFAS)
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Finance Minister Enoch Godongwana has launched a scathing attack on the National Student Financial Aid Scheme (NSFAS), saying he does not see the value of the institution.
Last year, IOL also reported that Godongwana said that if it were up to him, he would even close the institution tomorrow with his "eyes closed". The financial aid scheme continues to face reports of mismanagement, which is said to have severely affected its ability to effectively distribute funds to students.
Godongwana said the government spends about R700 million a year on administering NSFAS, money he believes could instead be used to fund the studies of around 9,000 additional students.
“I don’t see its value. In fact, we’re spending R700 million on the administration of NSFAS. If we took that money and divided it, we could pay the fees of 9,000 students, just with what we spend on administration. All the people with sentimental attachment to NSFAS are attacking me," Godongwana said.
He added that his criticism is not aimed at student funding itself, but at what he sees as inefficiencies within the institution. He also criticised the scheme for outsourcing work that it was created to do.
"It’s nice, I’ve learned that to be Minister of Finance, you don’t have to be loved by everybody. You just have to state the facts. NSFAS is supposed to be paying universities for student accommodation and other services, but instead, they’ve employed three other service providers to do the work they were created to handle,” Godongwana added.
Last year, NSFAS CEO Waseem Carrim also acknowledged that corruption remained a serious concern within NSFAS.
“Of course, we know there have been many instances of corruption, not only in the administration of bursaries or loans but also across the accommodation sector,” he said.
He added that the NSFAS board is committed to working with relevant authorities, including the Auditor-General, Public Protector, law enforcement, and the Special Investigating Unit (SIU).
“The SIU has already helped NSFAS recover close to R1.8 billion,” he said.
“We will continue to work with them to recover any lost funds and ensure they are used correctly to support students.”
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