More than 800 students listed as dead were paid by the National Student Financial Aid Scheme (NSFAS), while thousands of others who did not qualify also received funding.
This is according to an audit that led higher education minister Buti Manamela to step in and take action.
Manamela, together with his deputies, met with the NSFAS board, its acting CEO and the auditor-general this week to address what he described as a deep crisis in governance and service delivery. After the meeting, the minister issued a formal directive to the NSFAS board.
The NSFAS received a disclaimer audit for 2024/25, the worst result an institution can get.
The audit found serious problems. It revealed 822 students who are recorded as dead continued to receive funding. It also found more than 14,000 students whose families earn too much were funded. Another 321 students were receiving NSFAS money and social grants.
There were also many cases in which students who failed their studies or had qualifications continued to receive funding.
These are not audit findings. These are violations of the basic dignity of young people who came to study, not to survive a housing crisis created by the state’s own dysfunction
— Buti Manamela, higher education minister
“These findings mean funding allocations intended for poor and working-class students were diverted, whether through system failures, misrepresentationor fraud,” said Manamela.
He said the exact causes are not yet clear, but action will be taken.
“What we are in a position to do is investigate, recover and prevent recurrence.”
Manamela said investigations will start immediately and fraud cases will be handed over to authorities. He also reassured students who qualify, saying: “No student who genuinely qualifies for NSFAS funding has anything to fear from the investigations.”
The audit also found severe problems with student accommodation. Reports include:
- unsafe living conditions;
- students housed near taverns;
- lack of transport; and
- landlords threatening students over unpaid fees.
“These are not audit findings. These are violations of the basic dignity of young people who came to study, not to survive a housing crisis created by the state’s own dysfunction.”
The board has been ordered to audit all accommodation providers and suspend those failing to meet standards. A new accommodation policy framework is expected by the end of April.
We are committed to the NSFAS. We are committed to the students. We are committed to building an institution that can be trusted
— Manamela
Despite the setbacks, the department said some progress has been made:
- NSFAS has cleared backlogs in financial reporting and is working towards meeting deadlines;
- a loan recovery strategy has been approved; and
- Sars is set to resume data-sharing with the scheme.
However, Manamela said this is not enough. “These achievements do not offset the audit regression,” he said, adding accountability must be enforced across the institution.
As part of a new joint accountability framework, the NSFAS must submit a full remedial plan by April 30. The minister and his deputies will also hold quarterly oversight meetings, with progress reported to parliament.
Students waiting for appeal outcomes, currently 7,805 cases, are expected to see faster resolutions. The minister has directed no student should wait longer than 70 days.
“The students living in unsafe or substandard accommodation have rights,” he said, warning non-compliant providers will be removed.
Manamela also assured about 800,000 students who depend on NSFAS that their funding is safe: “Your funding is not at risk from the investigations under way.”
The goal is to fix the NSFAS and make it work properly again, he said. “We are committed to the NSFAS. We are committed to the students. We are committed to building an institution that can be trusted.”
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