MPs threaten to haul NSFAS before parliament

Higher Education Minister Blade Nzimande. Picture: Oupa Mokoena / African News Agency (ANA)

Higher Education Minister Blade Nzimande. Picture: Oupa Mokoena / African News Agency (ANA)

Published Sep 21, 2023

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The National Student Financial Aid Scheme (NSFAS) board has been threatened with legal summons should it again snub the National Assembly committee on higher education next week.

Members of Parliament were fuming on Wednesday after the embattled entity failed to account over the new direct-payment system, student appeals, IT system and accreditation of student accommodation.

The committee gave NSFAS two weeks to share a management turnaround strategy to deal with leadership and operation issues.

However, on the eve of the briefing, Higher Education Minister Blade Nzimande sent a letter, seen by the Cape Times, to the committee, in which he said both the department and NSFAS were not ready for the briefing.

“This is due to the fact that the NSFAS is still engaging in internal matters that they still have to report to me before they can be presented to the PC (portfolio committee).

“I therefore request that the meeting be postponed to next week when we are ready to report. Secondly, I request that the meeting be virtual so that I can attend,” said Nzimande.

NSFAS board chairperson, Ernest Khosa, also sent a letter on Tuesday, claiming it would not be prudent to brief parliament without first reporting to Nzimande.

“We therefore request for a postponement as we are unable to attend.”

NSFAS was also meant to give details about their contracts with the service providers Tenet Technology, eZaga, Noracco Corporation and Coinvest Africa.

The higher education ministry had revealed that about 115 complaints were received against the service providers, while at least 44 were finalised and 71 allegations were still being probed.

EFF MP Naledi Chirwa said: “This is not the first strike, there is a habitual behaviour. The repercussions are on the ground. Nzimande does as he pleases, in other committees these things don’t happen but here it happens. They are playing the victim card of being attacked and abused but it's them abusing us and the public. We cannot fail in the last months, we cannot afford to be toothless as a committee. We need to hold them accountable. There have been no consequences to NSFAS and this is not beyond our control. We need to write to the Speaker and take action against them now.”

ANC MP Tebogo Letsi said everyday appeals were not resolved, and he was concerned that the entity, which was meant to provide a service that protected students from social ills, was driving students to that point due to desperation.

“One day without payment it’s a day too long for students. Even today we have appeals that date back from February. NSFAS was meant to change the past and give hope to students.

They couldn’t respond to many of our questions earlier this month and they are not here today.

“They could have written to us last week, we are disappointed and feel disrespected.

“NSFAS failed to submit to AG last year amid a disclaimer opinion the previous year.

“They are failing to deliver services to students and (this) will lead to mental issues and stress. Let’s write to the Speaker to ask for a special dispensation and have the meeting next week.

“This falls out of the normal parliamentary programme,” said Letsie.

Committee chairperson, Nompendulo Mkhatshwa, said NSFAS and the minister requested postponement with the entity requesting it be moved to October.

“We have rejected this.

“The service providers are here, they sent their presentation and are ready to brief us, however this is not possible without NSFAS being here.

“I’m very concerned with what is happening.

“We have been very considerate to NSFAS and gave them time to think about their responses as they had requested.

“We will write to NSFAS and notify them we will issue summons immediately if they fail to come next week.

There is a breakdown of communication in the ecosystem of higher education.

The Speaker has been notified of this.

We have also rejected their apologies,” she said.

Universities and students had detailed to Parliament their struggles in relation to NSFAS decisions and delayed payments.

University of Fort Hare’s Student Representative Council (SRC) president, Siphokazi Mbalo, said they had to be assisted by management as they scrambled for food parcels for students who did not receive allowances for about two months.

This saw classes at the university also being moved online.

Unisa SRC secretary-general, Shatadi Phoshoko, shared the same sentiments and frustration.

UCT stated they had concerns with the funding model, the R45 000 accommodation cap and funding alterations had implications for their financial aid commitments, particularly regarding residence fees.

“The impact of this in the 2023 budget is R177 million additional allocation by the university to financial aid.”

The university’s spokesperson Elijah Moholola said there were ongoing measures by the university to assist students in need, with among others food security and other subsistence assistance support based on the limited budget available.

However, Cape Peninsula University of Technology (CPUT) spokesperson Lauren Kansley said they have not had the same challenges seen at other institutions.

“Our service provider is Tenet. The majority of our students completed the on-boarding process and received allowances from July month. Students in genuine need for food or counselling are flagged for assistance by student leaders and student affairs departments and they are assisted via institutional channels,” said Kansley.

The Board of Directors of Universities South Africa (USAf) had also expressed their concerns calling for a speedy resolution for the well-functioning of the higher education sector.

It said some changes in policy implementation in relation to accommodation and other matters such as defunding had an impact on universities, student debt had accumulated at over R700m.

Cape Times