GOVERNANCE FAILURES: NSFAS ‘has failed its mandate and left students paying the price’

The Public Protector has found prima facie evidence of systemic maladministration at the National Student Financial Aid Scheme, citing governance failures and delays that have harmed students and left some unable to access their qualifications.

The Public Protector says the National Student Financial Aid Scheme (NSFAS) has failed to fulfil its mandate, after more than 40,000 students at 76 higher education institutions were improperly funded to an estimated value of R5.1-billion. More than R2-billion has been recovered.

In a media briefing, releasing a Section 7(9) notice on Tuesday, 18 August, Public Protector Advocate Kholeka Gcaleka has recommended that within 90 days of the final report, the Higher Education Ministry and vice-chancellors must reform institutional debt recovery policies so that academic certificates are no longer withheld from graduates seeking employment. The NSFAS Board must deliver a comprehensive digital modernisation plan within 30 days to establish direct system interfaces with universities, home affairs and SARS.

The state’s primary vehicle for helping poor and working-class students access higher education has been hit by persistent governance and administrative failures.

Gcaleka said her investigation had uncovered systemic deficiencies in the administration, governance, funding, coordination and oversight of student financial aid. The investigation implicated not only NSFAS, but also the Department of Higher Education and Training (DHET) and other role players.

“The issues are systemic in nature and are of great public interest and importance to the people of South Africa,” Gcaleka said, explaining her decision to release the notice before the implicated parties had submitted their representations.

Gcaleka mentioned that the investigation began with complaints from students about administrative deficiencies affecting their access to financial aid and, consequently, higher education. Soon, the investigation revealed recurring failures across the system, including inadequate access to tuition funding, delays in allowances, accommodation challenges and inefficiencies in the administration of financial aid.

“It became apparent that the issues raised were not isolated incidents affecting individual students or institutions, but reflected recurring patterns of administrative failure,” said Gcaleka.

The Public Protector’s investigation was further informed by NSFAS’ governance instability, including a disclaimer audit opinion on its 2024/25 financial statements, the dissolution of its board and its subsequent placement under administration.