NSFAS Payment System Nzimande’s Defense and Challenges

NSFAS Payment System Nzimande’s Defense and Challenges. Higher Education Minister, Blaze Nzimande, has expressed his support for the new direct payment system introduced by the National Students Financial Aid Scheme (NSFAS). However, there remains a concern as over 350,000 students have yet to receive their allowances.

Mixed Reactions to the New Payment System

The recently implemented direct payment system by NSFAS has garnered both praise and criticism. While Minister Nzimande has lauded the system, it has left a substantial number of students without their expected allowances.

Nationwide Student Protests Raise Concerns

Students from various corners of the country have taken to the streets in protest against the new payment system. Their dissatisfaction stems from issues such as the complex sign-up process, difficulties in accessing funds, high bank charges, and the absence of a fixed payment date.

Nzimande Denounces Violent Protests

In response to the outbreak of violent protests, Minister Nzimande has unequivocally condemned such actions. He emphasizes that violence should not be associated with legitimate forms of protest, including those led by student representatives.

Statement following the meeting held with the Board of the National Student Financial Aid Scheme (NSFAS) on 08 August regarding the 2023 funding decision and the payment of allowances to students. pic.twitter.com/QXSoMqIvqN

— Minister Blade Nzimande (@DrBladeNzimande) August 11, 2023

Nzimande’s Response to OUTA Report

A recent report from the Organization Undoing Tax Abuse (OUTA) has raised concerns about the direct payment system. The report indicates that the four companies awarded contracts to manage the system were not registered as financial services providers. Despite this revelation, Minister Nzimande remains steadfast in his position, asserting that the four companies fairly won the bid.

Clarifying Company Credentials

Minister Nzimande clarifies that the appointed companies have affiliations with banks possessing valid commercial banking licenses. These companies are also equipped with Payment Association of South Africa licenses and Affiliate Banking licenses, essential for their sponsored banking licenses to operate and manage payment processes.