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 on Thursday.
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.
NSFAS has been plagued by several corruption scandals which have also had a direct impact on the delivery of services to 1.2 million students funded by the scheme.
Nzimande is expected to conduct a “special media briefing” on Sunday to explain his reasons for dissolving the NSFAS Board.
The now axed board members include board chairperson Khosa and board members Melosi Baloyi, Jullie Beya, Prof Ntombizozuko Dyani-Mhango, Nceba Maxwell Fuzani, Sibonelo Cyril Madiba, Lucky Masuku, Dr Reshma Mathura, Bamanye Matiwane, Prof Pumela Msweli, Lisa Seftel, Yonke Twani, Prof Laurance van Staden and Sanele Zondi.
Earlier this week, the NSFAS received criticism from students for their delays in paying out student allowances.
Universities had temporarily taken over the responsibility of facilitating the payment of allowances for February and March. According to the entity, this was due to challenges experienced at the beginning of the academic year which led to delays in receiving registration data from the institutions.
As of April 1, fintech companies eZaga Holdings, Tenet Technology, Noracco Corporation and Coinvest Africa resumed administration services as they are still contracted with NSFAS.
Last month, the entity had explained that there was a legal process of terminating the contracts and it was also still looking for a long-term solution of how the direct payment system could continue after the companies are gone.
Meanwhile Democratic Alliance (DA) member of Parliament (MP) Chantel King has called on Nzimande to follow suit and resign with immediate effect.
“Once again, the nonpayment of student allowances has left many students hungry, without funds for food, and even facing the real risk of being put out on the streets.
“This dire situation underscores the urgent need for action to address the systemic failures within NSFAS and the Department of Higher Education.
“Something the DA has been calling for since it became clear that the system was riddled with problems.
“Minister Nzimande cannot be absolved from the actions of the board since he has defended the decisions of the board on numerous occasions,” says King.
King adds the DA stands firm in its commitment to ensuring accountability and transparency in all sectors of government.
“The recurring problems of nonpayment of student allowances and the alleged fraudulent activities involving kickbacks from service providers have not only undermined the wellbeing of students but have also threatened the continued functioning of our higher education system.
The DA will not waver in our pursuit of justice for those who have been negatively affected by the mismanagement of NSFAS,” adds King.