Minister of Higher Education Dr. Blade Nzimande recently took the decisive step of dissolving the National Student Financial Aid Scheme (NSFAS) board and appointing an administrator. This move, announced during a press briefing, was motivated by the board’s apparent inability to fulfill its core responsibilities effectively.
Lack Of Board Effectiveness
Nzimande highlighted key deficiencies within the NSFAS board, emphasizing its failure to execute crucial tasks. One significant issue was the board’s inability to implement the recommendations outlined in the Werksmans’ report fully. These recommendations included the termination of contracts with certain service providers, particularly those irregularly appointed, such as the direct payment service providers.
Nonpayment Of Student Allowances
The decision to dissolve the board coincided with a troubling situation: the nonpayment of student allowances. This failure to disburse funds has left thousands of students stranded, unable to meet essential needs like accommodation.
Operational Failures
Operational shortcomings further compounded the challenges faced by NSFAS. These included the board failure to submit accurate annual reports to parliament, manage and finalize reports from previous schemes, and address capacity deficiencies within the organization.
Communication And Consultation Issues
Nzimande also highlighted communication and consultation deficiencies, citing the board’s inability to respond promptly and efficiently to student queries. Additionally, there were challenges in consulting on guidelines for addressing issues related to the “missing middle” — students whose families earn too much to qualify for financial aid but still struggle to afford tuition.
Divided Board And Internal Strife
Internal divisions within the board exacerbated the situation, with some members reportedly working against the board’s collective goals. This internal strife further hindered the board’s ability to function cohesively and effectively.
Impact On Students And Reputation
The overarching consequence of these shortcomings was a detrimental effect on student welfare and the reputation of both the Department of Higher Education and NSFAS. Students experienced unnecessary stress due to delayed allowances, while the reputation of the institutions involved suffered significant damage.
Appointment Of Administrator
In response to these challenges, Freeman Nomvalo, a seasoned professional with a background in finance and governance, was appointed as the NSFAS administrator. Nzimande expressed confidence in Nomvalo’s ability to address the issues facing NSFAS. Nomvalo is empowered to make necessary appointments of technical experts to assist in various areas of NSFAS operations, in consultation with the Minister.
Conclusion
Despite the dissolution of the board, Nzimande reassured stakeholders that NSFAS operations would continue uninterrupted. The appointment of an administrator signals a proactive approach to address the systemic issues plaguing the organization and ensure the effective delivery of financial aid to deserving students.