By Lehlohonolo Lehana.
Higher Education and Training Minister Blade Nzimande dissolved the board of the National Student Financial Aid Scheme (NSFAS) and placed it under administration, as many beneficiaries continue to face non-payment issues.
At a meeting on Thursday, he informed the board that it had been dissolved with immediate effect. The decision will be published in the Government Gazette on Friday.
NSFAS chairperson Ernest Khosa resigned on Thursday before Nzimande announced his decision to dissolve the board.
The minister presented a laundry list of failures by the NSFAS board which led to its dissolution. The list included everything from the board’s inability to submit a corrected annual report to parliament to the institution’s consistent inability to respond to student queries in a timeous and efficient manner.
“I have consistently raised my concerns with the outgoing NSFAS board about the inability and failure of NSFAS to carry out and implement some of its most basic responsibilities,” Nzimande said.
He faulted the board on its inability to fully implement the recommendations of a Werksmans report, including that NSFAS should terminate contracts with its direct payment service providers, which were allegedly appointed irregularly. “I raised this in December. I said steps must be taken to remove these service providers and that has not happened,” Nzimande said.
The minister also bemoaned NSFAS management’s consistent inability to ensure timeous student allowance payments, which he said has threatened the stability of some of the country’s universities and technical and vocational education and training colleges.
Nzimande said he had engaged the board on several occasions and presented various solutions, including a turnaround strategy which has not been achieved within agreed timelines.
Financial aid scheme’s woes have not only negatively affected the wellbeing of students, he said, but have also brought reputational damage to NSFAS, department and government. “Our detractors have been celebrating these weaknesses,” the minister added.
Nzimande further said he will not resign and that his detractors are just ‘playing politics’ by calling for him to step down after he did not immediately intervene in the failure of the NSFAS.
The Organisation Undoing Tax Abuse (Outa) called for Nzimande to step down saying that, if the minister fails to do so, President Cyril Ramaphosa should fire him immediately.
“Who is saying I must resign? I will not resign, I am not appointed by them,” Nzimande said.
After the resignation of Khosa and the dissolution of the NSFAS board, the Democratic Alliance (DA) and ActionSA also called for the immediate resignation of Nzimande.
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