Cape Town – Higher Education Minister Blade Nzimande says he dissolved the NSFAS board due to its failure to address student challenges, particularly regarding the payment of allowances.
The decision came after the board did not act on recommendations from an investigation into irregularities in the appointment of service providers.
Nzimande, who addressed the media on Sunday, announced the appointment of Sithembiso Freeman Nomvalo, as the administrator of the National Student Financial Aid Scheme while also explaining the reasons for dissolving the scheme’s previous board.
The minister said Nomvalo possessed extensive knowledge and an impeccable record of accomplishment in public finance and government processes.
Newly appointed NSFAS administrator, Freeman Nomvalo, says he will be engaging students to address their grievances. Higher Education Minister Blade Nzimande appointed Nomvalo amid maladministration accusations and students’ payment problems.https://t.co/Gmu2CmsIth pic.twitter.com/VqsRoMBzLP
— Newzroom Afrika (@Newzroom405) April 14, 2024
He expressed concern over the consistent delays in allowance payments, which caused stress for students and their families and threatened the stability of some TVET colleges.
“Through various formal engagements, as Minister, I have consistently raised my concerns and unhappiness with the outgone NSFAS Board, about the inability of NSFAS to carry out and implement some of the most basic responsibilities allocated to it,” he said.
He said that the board encountered numerous challenges, including the termination of contracts with direct payment service providers who were appointed without proper procedures.
Consequently, on April 11, 2024, the board was dissolved, and the scheme was placed under administration the following day. Additionally, the decision stemmed from the board’s inability to ensure prompt payment of student allowances by the management.
“This has resulted in unnecessary stress for students and their parents, and also continues to threaten the very stability of some of our TVET [Technical Vocational Education and Training] colleges and universities,” the minister said.
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Compiled by Betha Madhomu
