NSFAS improperly funded 40,000 students to tune of R5.1bn – Public Protector

Public protector

Cape Town – More than 40,000 students across 76 higher education institutions were improperly funded by the National Student Financial Aid Scheme (NSFAS) to the value of R5.1 billion, with more than R2 billion recovered so far, Public Protector Advocate Kholeka Gcaleka has revealed.

According to SABC News, Gcaleka released the findings of a systemic investigation into NSFAS in Pretoria on Tuesday, raising concerns about the scheme’s administration, governance and ability to provide students with reliable financial support.

The R5.1 billion figure stems from an investigation by the Special Investigating Unit (SIU) under Proclamation R88 of 2022. The SIU identified more than 40,000 students who had been improperly funded across 76 higher education institutions, with recoveries exceeding R2 billion.

The Public Protector’s investigation was prompted by complaints and recurring concerns around student funding, including protests, funding delays and administrative problems within NSFAS.

Gcaleka said subsequent developments at NSFAS further reinforced concerns about the scheme and the broader higher education funding system.

These included a disclaimer audit opinion issued by the Auditor-General of South Africa on NSFAS’s 2024/25 annual financial statements, the dissolution of the NSFAS board and the subsequent placement of the scheme under administration, a decision that was later overturned by the courts.

“The decision to initiate this investigation was further informed by subsequent developments which re-emphasised concerns regarding the governance and administration of NSFAS and the broader higher education funding system,” Gcaleka said.

The findings have renewed calls for fundamental changes to the way student financial aid is administered.

Speaking to Newsroom Afrika, South African Union of Students president Siyabonga Nkambako called for NSFAS to be placed under the supervision of National Treasury, together with stricter policies and stronger consequence management.

Nkambako argued that National Treasury should have a greater role in determining the level of funding required by students because much of the money supporting higher education comes from the department.

“Majority of the funds that are coming to the institution, they are coming from National Treasury. And with all of these funds coming from National Treasury, I think that it’s high time that we took NSFAS and we put it under the supervision of National Treasury,” he said.

He also called for officials to face consequences when they fail to perform their duties.

“We highly best believe that we need to take NSFAS and put it under National Treasury. And once it’s with National Treasury, we need very strict policies that are then going to be implemented by National Treasury, and also have consequence management to people that are able to fail in doing their jobs,” Nkambako said.

The problems facing NSFAS are also affecting student accommodation, with some students facing eviction amid disputes and delays over payments.

SABC News reported that accredited accommodation was among the issues affecting students at Western Cape TVET College, where some students faced eviction because of outstanding accommodation payments.

Many students at the college come from outside the Western Cape, adding to the difficulties faced by those who have relocated to the province to study.

TVET SRC representative Thadekile Mthombothi told SABC News that students were struggling with uncertainty over their funding.

“Most of our students in the Western TVET College are not from the province. So, with them coming to a different province only to not receive funding, only to struggle with funding, be defunded, it is quite a difficult time for our institution and our students,” Mthombothi said.

She said the institution had tried to assist students where possible.

“We try as much as we can, even from our own pockets, to try and deliver as much as we can to the students,” she said.

Government says accommodation payments are being addressed

Deputy Higher Education Minister Yasuf Cassim said several factors had contributed to the accommodation-related evictions, but identified a dispute over residence rates as the main issue.

Cassim said some students had been living at the residence since February and had faced intimidation because of outstanding payments.

“Students have been residing in this residence from February, and have been subjected to intimidation tactics because of the non-payment of the landlord,” he said.

Cassim said his office intervened after becoming aware of the situation and engaged with both the college and NSFAS.

The college subsequently arranged temporary accommodation for students facing eviction, although Cassim acknowledged that the alternative accommodation was not conducive.

NSFAS also initiated payment runs to settle outstanding amounts.

“There was also immediately payment runs that were run by NSFAS in order to ensure that the payments took place. That payment run took place on Monday. So the residence has been paid,” Cassim said.

The Public Protector’s findings place renewed scrutiny on NSFAS, which remains a key source of financial support for students from poor and working-class households.

The identification of R5.1 billion in improper funding across 76 institutions, coupled with ongoing concerns about funding delays, accommodation and governance, has intensified calls for greater oversight and reform.

The Public Protector has also identified broader systemic problems within NSFAS, including administrative and governance failures that have affected students’ access to financial aid.

For student representatives, the central concern is now whether the latest findings will result in meaningful changes to the way NSFAS is governed and administered.

Picture: X/ @PublicProtector

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Compiled by Glaan Sibuyi

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