PRETORIA, Gauteng — The South African Students Congress (SASCO) is demanding a comprehensive forensic investigation into the National Student Financial Aid Scheme (NSFAS) following severe allegations of financial misconduct and systemic maladministration. SASCO President Alungile Kamtshe stated that while the student body welcomes the recent Public Protector’s report, criminal scrutiny must focus heavily on the NSFAS officials and executives who authorized irregular payments, rather than the vulnerable students who inadvertently received the funds.
Addressing the governance crisis engulfing the student aid scheme, Kamtshe emphasized that it is unjust to hold approximately 40,000 students criminally liable for funds erroneously deposited into their accounts. He referenced a past incident where a student faced jail time for spending mistakenly allocated millions, arguing that the true culpability lies with the executives, boards, and chief financial officers who authorize these transactions.
According to the SASCO president, the financial mismanagement extends beyond administrative errors. He highlighted deeply concerning allegations—previously raised under oath in parliament—that public officials, including members of parliament and potentially deputy ministers, benefited from luxury hotel accommodations paid for by the scheme. Kamtshe argued these instances represent deliberate actions to siphon funds meant for the poorest students, necessitating immediate executive accountability.
Board Dissolution and Administrator Credibility
The student leader expressed a profound lack of confidence in the current NSFAS board and its leadership. Kamtshe noted that the board, which was dissolved this year after being appointed in early 2024, was illegally constituted in violation of Section 5 of the NSFAS Act. He questioned what the board achieved during its tenure to resolve the scheme’s pervasive issues, pointing to internal factions, indecisiveness, and a lack of credibility.
Furthermore, Kamtshe cited severe internal scandals, noting that the board currently lacks a chairperson and has been marred by allegations of members stealing laptops, alongside the “Ramia” court judgment which resulted in a member’s removal. He also cast doubt on the credibility of the current NSFAS administrator, referencing a Pretoria High Court judgment that influenced the court’s decisions regarding the administrator’s tenure.
Calls for Ministerial Intervention
With the relationship between the higher education minister and the NSFAS board described as “totally broken down,” Kamtshe urged the minister to utilize Section 17 of the NSFAS Act. This statutory provision empowers the minister to intervene directly by placing the scheme under administration. He dismissed any political reluctance to enact this intervention as “plain politics” that actively hinders problem-solving and allows corruption and incompetence to persist.
When questioned about SASCO’s political alliance with the African National Congress (ANC) and potential bias toward the minister, Kamtshe clarified the organization’s “compliment and criticize” approach. He stressed that SASCO prioritizes educational access over political loyalty, noting that their ideological underpinnings differ vastly from opposition parties like the Democratic Alliance (DA).
Campus Unrest and the Future of Student Funding
This commitment to student welfare is currently being tested at the Cape Peninsula University of Technology (CPUT), where campuses have shut down due to unrest. Kamtshe called on the minister to leave their office and actively engage with CPUT to resolve the disturbances. He pushed back against the narrative that students protest out of laziness, emphasizing that demonstrations are a demand for a conducive learning environment and a recognition of the immense value of education in South Africa.
Looking toward systemic solutions, Kamtshe addressed ongoing debates over whether NSFAS should pay institutions directly rather than acting as a middleman. While acknowledging that direct tuition fee payments to the 26 universities and over 50 TVET colleges are currently working, he warned against entirely decentralizing the financial aid scheme. He argued that the current Higher Education Act limits government oversight due to institutional autonomy, making blind financial injections risky.
Instead, SASCO advocates for the decentralization of operational queries to the ground level to better serve students. Kamtshe concluded by highlighting the necessity of amending the Higher Education Act and factoring in the massive Special Investigating Unit (SIU) recoveries, which he noted currently sit at over 417 billion, proving that simply shifting money to autonomous institutions without strict oversight will not solve the underlying crisis.
