Higher Education Minister Dr Nobuhle Nkabane says the National Student Financial Aid Scheme (NSFAS) will operate with integrity under the newly-appointed board. Picture: Supplied
The newly appointed National Student Financial Aid Scheme (NSFAS) board has vowed that those who have been involved in corrupt activities and maladministration would be brought to book.
The board said it has been instructed and mandated to clean the system following its appointment as announced by Higher Education and Training Minister Dr Nobuhle Nkabane.
In recent years, NSFAS faced many challenges, including unpaid loans from graduates, reduced funding for current students, and an ongoing corruption crisis.
The challenges resulted in the institution being placed under administration and the dissolution of the previous board.
The board chairperson Dr Karen Stander said the board would not tolerate corruption.
Stander said those who have been engaging in corruption would be dealt with.
“Management will be expected to demonstrate the consequence if there are any apples that are polluting the system.
“I have had meetings and engagements with the Minister, her instructions are clear, clean the system,” she said.
However, she added that the board would need to be appraised of the extent of corruption and how the institution has been handling it.
“We are not oblivious of what has been reported in the press, the court cases, the reasons for putting NSFAS under administration and many other evidential material in the public space.
“Some of the state investigations authorities have been reaching out to me as chairperson of the fund, together with the board, we are still establishing a relationship with the facts,” Stander said.
The board members also include Ndileka Loyilane, Richardt Ramashia, Lavandran Gopaul, Philisiwe Sibiya, Clarinda Simpson, Prashika Mahesh, Siyanda Mngadi, Karabo Mohale, Johanna Maphutha, Mungwenya Maluleke and Macia Socikwa.
In a statement last week, Nkabane said members appointed to the board possess a minimum qualification of a master’s degree and extensive professional experience in finance, law, engineering, or governance.
She said this strategic approach ensures that NSFAS is managed by individuals with the necessary expertise to navigate financial and administrative complexities while upholding transparency and efficiency.
“In with this commitment, the board’s composition reflects the values of inclusivity, youth empowerment, and gender representation. The newly appointed members meet stringent qualification requirements and embody a diverse and representative leadership team dedicated to transforming higher education funding,” she said.
Nkabane further reiterated the government’s dedication to building a strong and credible NSFAS that functions efficiently and restores public confidence.
She added that by selecting individuals with proven expertise and experience, the financial scheme will operate with integrity, prioritise student needs, and efficiently deliver on its mandate.
“This appointment signals a firm stance on governance reforms within NSFAS and sets a precedent for accountability in state-funded institutions,” she said.
Stander, in her message of acceptance, acknowledged that the institution faced significant challenges and many students were turned away for higher education.
She said this was not only because of financial constraints but also due to capacity limitations.
“As the President, Ministers, Department of Higher Education and Training (DHET), vice-chancellors, USAF and SAPCO work towards solutions to expand university and TVET colleges capacity, it is the role of NSFAS to ensure that we are ready to fund and support these students.”
This means thinking beyond the present, planning for the future and ensuring that our funding model is both sustainable and inclusive, she said.
Meanwhile, the Organisation Undoing Tax Abuse (Outa) welcomed the board, adding that it hopes good governance would prevail.
The Private Student Housing Association (PSHA) said the new board should clarify the accommodation allowance rates for the 2025 academic year.
The association said NSFAS’ failure to declare the student accommodation allowance rate on time has planted the seeds of chaos in the sector and caused enormous financial hardship for private accommodation providers, students, parents and universities.
“Clarity on the accommodation allowance rates should have been announced in the third quarter of 2024, giving all concerned parties - students, private accommodation providers, and educational institutions - enough to prepare,” said the association, adding that the current cap rate is grossly insufficient and lower than market-related rates for properties that comply with DHET’s minimum norms and standards of student accommodation for university policy.
Cape Times