DA requests NSFAS to provide quarterly financial reports following dismal financials at the expense of poor students
19 November 2019
The Democratic Alliance (DA) will write to the Minister of Higher Education, Science and Technology, Blade Nzimande, to request he commits the National Student Financial Aid Scheme (NSFAS) to submit quarterly financial reports to the Portfolio Committee on Higher Education following the tabling of its dismal 2018/2019 Annual Report. The Annual Report revealed that NSFAS raked up an accumulated R7.5 billion in irregular expenditure.
This irregular expenditure includes R1 billion in irregular payments to students, with a R3 billion carry-over from the previous financial year. This means that NSFAS is effectively unable to account for over R4 billion over the past 12 months, money which could and should have been used to fund the education of deserving students from poor and underprivileged backgrounds.
To make matters worse, NSFAS has spent R5.3 million on asset managers who wrongfully invested in the VBS scandal. Furthermore, they overspent by R5 billion in the past financial year, an amount which includes losses estimated at R2.1 billion. NSFAS has since received a qualified audit opinion due to limitations and shortcomings in the areas of cash flow statements, amounts due to institutions, bursary expenditures and contingent liabilities.
It is clear that NSFAS invests in inept administrations, that are unable to disburse allowances leaving students to pay the price for ‘systemic and deep-rooted…irregular and wasteful expenditure (which) continues to emerge as (NSFAS) accounts are reconciled’. These are statements taken directly from the 2018/2019 Annual Report tabled by NSFAS before Parliament.
The status quo at NSFAS is unsustainable as clearly the entity cannot contain the financial mismanagement, and in some cases, blatant thievery within its ranks. It is therefore pertinent that Parliament provides effective oversight and monitor any further financial losses, transgressions and irregular expenditure amounts through quarterly reports. The Portfolio Committee must also agree on a complete overhaul of the broken entity that is NSFAS by January 2020.
NSFAS is indicatively an entity that has dismally failed to cater for students trying desperately to escape the cycle of poverty that encapsulates their lives with higher education. NSFAS especially fails students in TVET colleges, with a cellphone activated wallet system that has disbursed funds late, or not at all, impacting thousands of students. This poor disbursement system has seen some learners go hungry and some have even lost their accommodation, being unable to meet their living arrangement payments on time because NSFAS is entirely unable to deliver on its mandate.
It is therefore pertinent that the Department set up an ICT team immediately to establish a system that will deal with the data architecture issues and data controls for the effective and correct disbursement of funds to students in need. NSFAS should also provide Parliament with specific timelines on the pending forensic and disciplinary cases taken with regards to the appointment of a new management team which will work under an overhauled environment to rebuild and reimagine the institution. And lastly, NSFAS needs to establish regional offices and representatives on all university and TVET campuses, during the walk-in and registration process in January, February and March of 2020.
The DA will be visiting all provinces during the 2020 registration period to monitor and ensure that students receive their allocated and rightful allowances, on time. No student deserves to be left behind or without an education due to the dysfunctionality and wasteful expenditure by NSFAS.
Issued by Baxolile ‘Bax’ Nodada,DA Shadow Deputy Minister of Higher Education, Science and Technology, 19 November 2019
