Higher Education Minister Dr Blade Nzimande says the inability of the outgoing National Student Financial Aid Scheme (NSFAS) board to carry out its basic responsibilities formed part of the main reasons for the dissolution of the board.
Nzimande briefed the media in Pretoria on his decision to dissolve the board and to place NSFAS under administration.
He announced his decision last week after Ernest Khosa resigned as board chairperson.
Nzimande conducted an urgent meeting with the board last week and informed them that their positions had become redundant with immediate effect. The decision to dissolve the board by the Minister is set to be part of interventions meant to improve the efficiency of the entit
Nzimande has appointed the former CEO of the South African Institute of Chartered Accountants (SAICA), Freeman Nomvalo, as the scheme’s new administrator. Nzimande explains how the board failed to deliver on its mandate.
“ As Minister, I have consistently raised my concerns with the outgoing NSFAS board about the inability of NSFAS to carry out and implement some of its basic responsibilities, inability to fully implement the recommendations of the report, key among which was the termination of contracts of direct payment service providers, which according to this report we appointed irregularly. I must say, I raised this in December that steps must be taken to remove these service providers and that hasn’t happened.”
Nzimande says the inability of the outgoing NSFAS board to carry out its mandate has caused undue pressure on students and their families. He defended his decision to dissolve the board.
“The consistent inability to oversee payment of student allowances timeously by management, which has resulted in unnecessary stress for students and their parents. The inability to submit a corrected annual report to Parliament, and an inability to manage and finalise the close -out report of NSFAS arising from the old scheme that was there before. The inability to address very serious and glaring capacity deficiencies within the organisation including the call centre by the way which is still not functional. The consistent inability to respond to student queries in a timeous and efficient manner.”
He told journalists that while the decision to dissolve the NSFAS board was not easy, it is part of a set of interventions to improve the organisational efficiency of NSFAS to better serve students.
“ The dissolution of the board, let me repeat this, will not affect the normal functioning of NSFAS, including all payments that have got to be made. So, people must not panic. We’re not going to change our commitments just because there is no administration. The decision to dissolve the board was not something that we took lightly. And I wish to assure the public that in taking these decisions, I have considered all possible implications, including the impact that it might have on NSFAS employees and the students.”
Meanwhile, student activist from the Tshwane University of Technology (TUT), Keamogetswe Masike says, student bodies are calling for the resignation of both Nzimande and his deputy, Buti Manamela.
“We’re questioning the role of the deputy minister, because you’d understand that in any team, if the head coach is failing, the assistant coach must take over. The head coach has been failing us, which is the Minister of Education. Buti Manamela, we’re calling, upon his resignation as well, building up to a national protest that is part and parcel of a memorandum of demands, that both the head coach and assistant coach, must vacate that office, that office has been dysfunctional and incompetent. Any time from now a bomb can strike, our universities are ready, students are ready, picket lines are calling us.”
Education activist, Hendrick Makaneta, says the appointment of the former CEO of SA Institute of Chartered Accountants as the NSFAS administrator inspires confidence that the entity can remain focused on its mandate.
Makaneta says there is no doubt that the new sheriff at NSFAS brings a wealth of experience, particularly in the field of finance and auditing.
“The appointment of the CEO of the South African Institute of Chartered Accountants as the NSFAS administrator inspires confidence. This appointment will surely go a long way to prepare the ground to ensure that students receive their allowances on time. We know that NSFAS is a very important vehicle through which millions of students from destitute families tend to gain. Students need this support in order to fulfill the right to learn.”
