MPs Demand Answers Over NSFAS ICT Upgrade. The National Student Financial Aid Scheme (NSFAS) has come under scrutiny as the Portfolio Committee on Higher Education and Training demands answers regarding the R136 million allocated by the National Treasury for upgrading the organization’s ICT systems. The funds were intended to address ongoing failures in the system, but the committee believes that these upgrades have not been carried out as promised. This article delves into the key concerns raised by the committee, the responses from NSFAS, and the broader implications for students relying on financial aid.

Call For A Forensic Investigation

The call for a forensic investigation was initiated by Tebogo Letsie, the newly appointed chairperson of the Portfolio Committee on Higher Education and Training. Letsie, who has vowed to ensure accountability during his tenure, requested that the Department of Higher Education and Training probe into how the funds meant for the ICT upgrade were utilized. His concerns were heightened by the lack of visible improvements in the ICT systems that are crucial for the efficient operation of NSFAS.

NSFAS Faces The Committee

During a recent committee meeting, NSFAS representatives, led by Administrator Freeman Nomvalo, provided an update on the funding for the 2024 academic year. The committee’s primary focus was on the challenges faced by NSFAS, particularly in relation to its institutional and administrative functions. Nomvalo admitted that while efforts have been made to sort out the ICT systems, the process has been slow and the system remains inadequate for its intended purpose.

The Impact On Appeals And Applications

Nomvalo highlighted that the underperforming ICT systems have significantly affected NSFAS’s ability to manage appeals and process applications, especially for the R3.8 billion loan scheme designed to support “missing middle” students. He revealed that there were 35,226 unresolved appeals, with 1,660 still untouched. Furthermore, only a fraction of the over 31,000 applications received for the loan scheme have been processed, leaving thousands of students in limbo.

Questions Over Fund Utilization

Chairperson Letsie expressed serious concerns about the use of the R136 million allocated for the ICT upgrade. He questioned whether these funds had been misappropriated and called for a thorough investigation to determine if any criminal activity had occurred. Letsie emphasized the importance of accountability, stating that individuals found responsible should face legal consequences.

Oversight And Accountability Measures

Moving forward, the Portfolio Committee on Higher Education and Training has committed to exercising strict oversight over NSFAS. Letsie announced that the committee would require monthly reports detailing NSFAS’s progress in handling appeals, disbursing payments for student accommodation, and managing allowances. This increased scrutiny is intended to ensure that NSFAS rectifies its shortcomings and provides the necessary support to students.

The Controversy Of NSFAS Expenses

The committee’s concerns were further amplified by revelations about NSFAS’s expenditure. Letsie pointed out the irony of NSFAS renting a building at a cost of around R2 million per month while claiming insufficient funds in its administrative budget to hire additional staff. This contradiction has raised questions about NSFAS’s financial management and its commitment to addressing the pressing needs of students.

A Call For Immediate Action

MP Matlhodi Maseko was particularly vocal about the inadequacies in NSFAS’s handling of the loan scheme. She described the situation as “unacceptable” and stressed the importance of the loan scheme and ICT system upgrade in enabling students to access higher education. Maseko’s comments reflect the broader frustration among MPs who are demanding immediate and decisive action from NSFAS.

Conclusion

The Portfolio Committee on Higher Education and Training’s demand for a forensic investigation into the R136 million ICT upgrade fund marks a critical moment for NSFAS. With thousands of students depending on the scheme for their education, the stakes are high. The committee’s increased oversight and the call for accountability signal a determination to ensure that NSFAS fulfills its mandate effectively. The coming months will be crucial as NSFAS works to address these challenges and restore confidence in its operations.