The Chairperson of the Portfolio Committee on Higher Education and Training, Tebogo Letsie, has called for disciplinary action against National Student Financial Aid Scheme (NSFAS) officials who authorised improper funding for more than 40,000 students at a cost of R5.1 billion.
This follows a damning Public Protector report into NSFAS and the improper funding of students.
According to the report, approximately 40,000 students across 76 higher education institutions were improperly funded, amounting to R5.1 billion.
Speaking on YOU FM Newshour, Letsie said the Public Protector’s findings were concerning but not entirely surprising, given the persistent governance, administrative and system challenges at NSFAS.
“It’s also important to note that the third administrator was declared null and void by the North Gauteng High Court just last Friday, with the judge indicating that the Minister failed to follow the correct processes. So, we are not surprised by the latest report of the Public Protector.
“Because in the past two years since we have been in office, we have indicated that their internal controls are too weak to confirm the funding status of students on time and to pay allowances to students and universities on time.
“So, it was not a surprise that we have this problem,” explained Letsie.
He said students should not have to bear the consequences of governance failures and administrative weaknesses at an institution that exists to support their education.
“We told the Department last week in our meeting that they have a shortfall of R15 billion because of poor planning.
“They, in fact, took more than the required number of students into the system, exceeding the funding provided by the National Treasury to fund the scheme. Now, that is not a mistake, but poor planning, and people must be held accountable.
“We have indicated that we want to see people taken to disciplinary hearings for putting the lives of students at risk, including putting the scheme itself at risk,” said Letsie.
Furthermore, Letsie said the committee would also pursue legal action against the former administrator and his advisers.
“We are again awaiting our legal team in Parliament to advise us on how to go about opening criminal cases against the erstwhile administrator and his advisers, who paid themselves money, some of it into their personal company bank accounts, without the necessary approval.
“Because we don’t see that as a mistake. We don’t see that as an irregularity. We take that as an illegal criminal element where you know you are not supposed to pay yourselves, but you did that anyway,” emphasised the Chairperson.
In addition, Letsie urged the recently restored NSFAS Board to take the findings seriously and act with urgency to address the weaknesses identified.
“I hope the restored Board is paying close attention to these findings. It must act swiftly to strengthen governance, improve systems and ensure proper accountability for every rand entrusted to NSFAS.
“We cannot continue to have the same failures year after year,” remarked Letsie.
