NEHAWU not surprised by AG findings on NSFAS

6 February 2021

The National Education, Health and Allied Workers’ Union (NEHAWU) is not surprised by the audit findings of the Auditor-General, Tsakani Maluleke, on the National Students Financial Aid Scheme (NSFAS).

The institution received a qualified audit for the financial year which ended in March 2020. Due to poor accounting records, the Auditor-General could not ascertain whether NSFAS has recovered from the mismanagement and poor governance that has engulfed it for the past couple of years. The lack of credible information has hindered the Auditor-General from making concrete findings thus further concealing the rot that has characterised the institutions for years on end.

As NEHAWU, we are vindicated by the report of the Auditor-General as it reinforce our long held assertion that the institution has been failing to fulfil its core mandate because most of its funds have been lost to irregular expenditure. NEHAWU has been on the forefront of highlighting the dire state of NSFAS and its role in disadvantaging many young people who are yearning for education.

The Auditor-General was unable to obtain sufficient audit evidence that contingent liabilities for student funding had been properly disclosed. Furthermore, she found that NSFAS did not include the required information on irregular expenditure, as required by the Public Finance Management Act (PFMA) which further proves that the rot might be more extensive than what meets the eye. As a public entity, NSFAS must be opened to scrutiny and accountability. In this regard, we condemn the concealing of accounting records and call for their unsealing. Those found to have participated in irregular expenditure must face punitive measures. 

The newly appointed board have a mammoth task of ensuring that the institution turns the corner and they must focus on the following pressing issues as a matter of urgency:

·      Practice good governance and implement accountable measures

·      End the victimization of workers (immediately withdraw all unfair suspensions and review all dismissals of workers)

·      Develop and introduce IT systems including removing the “hand of God” which withdraws the approved funding of students without anyone touching the system

·      Strengthen and implement recruitment policies

·      Immediately build confidence of workers through building relations between employees and management towards labour peace and stability of NSFAS

·      Respect for collective bargaining right and rights of workers

The national union will seek an audience with the new management in order to share our experiences and also listen to their strategic and operational plans to turn around the institution which is meant to create access to higher education for students especially those from working class background. The national union is an ardent advocate for clean governance, good and sound management and perfect financial management of public resources. As a union organising in the higher education sector we remain a constructive partner that is more than ready to contribute to the creation of access to higher education for deserving students.

Therefore, we would like to see NSFAS functioning properly, stable and being a capable institution that can be used as a vehicle for free higher education and not as a loan scheme like it is in its current form. In this regard, we will continue to advocate for the immediate changing of the mandate of NSFAS from bring a loan scheme into a vehicle for free education. Currently, NSFAS is doing the opposite of its mandate which is to provide access to deserving students. Instead it is failing these students and leaving them with no prospect of getting qualifications.

Furthermore, we will engage the Minister of Higher Education and Training to engage the Minister of Finance to avail more funds for NSFAS so that more students can be funded to further their studies. Should this fail, we will not hesitate to mobilise our allies the South African Students Congress (SASCO) and the Young Communist League of South Africa (YCLSA) to march to Treasury to demand more funding for students.

Issued by Khaya Xaba, National Spokesperson, NEHAWU, 6 February 2021