NSFAS Minister Issues Warning To New NSFAS Board

NSFAS Minister Issues Warning To New NSFAS Board. The National Student Financial Aid Scheme (NSFAS) has long been a cornerstone in facilitating access to higher education for South Africa underprivileged students. However, in recent years, the scheme has grappled with significant challenges, including financial mismanagement, administrative inefficiencies, and corruption allegations, leading to a decline in public trust. In a decisive move to restore integrity and operational efficiency, Higher Education and Training Minister, Dr. Nobuhle Nkabane, announced the appointment of a new NSFAS board on 18 February 2025.

New Era of Leadership

The newly appointed board is chaired by Dr. Karen Stander, a senior lecturer in UNISA’s College of Economic and Management Sciences, bringing over 13 years of academic experience and a PhD in Business Management from the University of Pretoria.

The board comprises individuals with a minimum of a master’s degree and extensive professional experience in fields such as finance, law, engineering, governance, and education.

This strategic selection aims to ensure that NSFAS is guided by professionals capable of navigating its financial and administrative complexities while upholding transparency and efficiency.

Ethical Leadership and Accountability

During the induction and orientation event for the new board members, Minister Nkabane emphasized the imperative of ethical leadership and financial accountability. She highlighted that previous failures in oversight had led to unnecessary distress for students and threatened the stability of tertiary institutions. The Minister urged the new board to “turn around that organisation, review the culture, review the strategy and make sure it works, and make sure that it does not leave anyone behind.”

Immediate Challenges and Strategic Focus

The new board faces several pressing challenges that require immediate attention:

1. Implementing a Funding Mechanism for the ‘Missing Middle’: Addressing the financial needs of students who do not qualify as poor but still cannot afford tertiary education is a priority. While funding has been earmarked for this group, a structured approach has yet to be implemented.

2. Enhancing Financial Management: NSFAS has consistently received qualified audits from the Auditor-General of South Africa, indicating significant room for improvement in financial oversight. With three board members possessing backgrounds in Chartered Accounting, alongside CEO Wassiem Carrim, who is also a Chartered Accountant, there is an expectation to stabilize NSFAS’s finances.

3. Filling Vacancies and Improving Operations: Addressing staffing shortages, ensuring timely disbursement of allowances, and re-establishing an efficient call center are critical steps toward restoring student trust and satisfaction.

Restoring Public Confidence

The appointment of the new board has been met with cautious optimism from various stakeholders. Parliament’s Portfolio Committee on Higher Education expressed confidence that the board’s expertise would address longstanding challenges and stabilize the government bursary scheme.

However, student unions have voiced concerns, emphasizing the urgency of addressing issues such as financial exclusion and accommodation shortages, which have recently led to student protests disrupting academic activities.

Conclusion

The new NSFAS board’s mandate is clear: to restore integrity, accountability, and operational efficiency to an institution that plays a pivotal role in South Africa’s higher education landscape. By addressing existing challenges head-on and implementing strategic reforms, the board has the opportunity to rebuild public trust and ensure that NSFAS fulfills its mission of making tertiary education accessible to all deserving students.