New Nsfas debacle: urgent restructuring needed

Dr Sheetal Bhoola is a lecturer and researcher at the University of Zululand and the director at StellarMaths (Phoenix & Sunningdale). Picture: Supplied

Dr Sheetal Bhoola is a lecturer and researcher at the University of Zululand and the director at StellarMaths (Phoenix & Sunningdale). Picture: Supplied

Published Jul 30, 2024

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DR SHEETAL BHOOLA

The irregularities within the National Student Financial Aid Scheme (Nsfas) are alarming, considering the dire need for funds to be directed into the education sector.

The new debacle comes after numerous indiscretions at the onset of 2024. In February and March this year, many students were starving, left without shelter and unable to travel to educational institutions because funds were not dispersed timeously.

In April, the Nsfas blamed the financial and technological platforms for the late funding distribution to students. The start to their educational year was rough and this impacted students’ capacity to learn effectively.

Three months later, a new debacle surfaces within the Nsfas. More than 400 students were awarded and received funding even though they did not qualify for financing.

A Special Investigating Unit has declared that the foundation needs to implement an accurate financial measure to determine and verify the amount of money each institution received.

The amount should be correlated and analysed against the number of qualifying students and their year of study. Since 2017, some institutions have been overpaid and underpaid, which has had a detrimental impact on the limited funding allocated to the tertiary education sector.

The irregularity has taken almost seven years to be acknowledged and investigated. Once again, numerous institutions have been partially blamed for incorrect amounts being paid by the Nsfas.

It has been reported that tertiary institutions did not submit data and reports timeously between 2017 and 2022. This has delayed the reconciliation processes and evaluations since the disbursement of funds.

From its inception in 1996, there should have been a measure and repercussion procedure if institutions did not adhere to Nsfas protocols timeously.

The fact that the revelation has surfaced seven years later leaves many socio-economic analysts, academics and civilians with many question marks and a tendency to think that corruption is at the forefront of the organisation and has been ongoing since its inception.

The Nsfas was established to support students to study further after completing high school but who lacked the finances. It is alarming that there have been so many irregularities with the funding disbursements and processes when the primary purpose of the fund was to serve impoverished and lower-income groups.

It is disturbing that an effective financial reconciliation process was not implemented much earlier than when the organisation was established. We must ask: If there was no measure to ensure accuracy and efficiency, does this not perpetuate an environment that could easily cultivate corruption and unethical practices?

Furthermore, media reports must discuss the details of the method used to investigate and assess the irregular payments. Only in 2023 was the Special Investigating Unit assigned to evaluate and retrieve excessive payments to institutions.

We could then insinuate that the Nsfas could have been aware of the irregularities but opted to remain silent for dubious reasons. As an academic, I question why it has taken six or so years before the Special Investigating Unit was incorporated to identify where gaps in the system lay.

The Nsfas has been negligent in this regard for multiple reasons, and ethical values are not a priority for the organisation.

A large amount of funds has been recollected from relevant tertiary educational institutions, but the irregularity has dramatically impacted our society’s overall development.

The unallocated funds have impacted young aspiring South Africans who would have liked to have pursued a tertiary education but could not. Such instances have altered the future of Grade 12 graduates from 2017 to 2022. The funds could have been put to purpose and supported students who qualified but were not allocated the grant because of insufficient funding.

The impact of continual irregularities has deepened the inequalities within our society. Education is a fundamental stepping stone to rid South Africa of disparities and allow people to progress economically and socially as individuals.

The challenges that the Nsfas experiences label the funding process precarious, unfair and dubious. The issues continue to devalue the positive impact the Nsfas was intended to have on society.

There needs to be an urgent restructuring process within the Nsfas so that its primary objective is at the forefront. Critical components for an effective and regulated process include regular assessments and evaluations, continuous communication with tertiary institutions and accountability from financial technological platform service providers.

Citizens in democratic South Africa should not be denied access to resources because of inefficiencies and irregularities. After all, a progressive society is an educated society that has opportunities for development and innovation.

Dr Sheetal Bhoola is a lecturer and researcher at the University of Zululand and the director at StellarMaths (Phoenix & Sunningdale).

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