The National Student Financial Aid Scheme (NSFAS) has recently made headlines due to the discovery that it had spent over R5 billion on students who did not qualify for funding. In response to this alarming situation, NSFAS has implemented a new system to prevent students from falsifying information on their applications and receiving undeserved funding. This article explores the details of this fraudulent activity and the measures NSFAS has taken to address it.
Discovery of Fraudulent Applications
Between 2018 and 2021, the Special Investigating Unit (SIU) conducted an investigation into NSFAS and uncovered that over 40,000 students had used false information to obtain funding. As a result, these students cost the organization over R5 billion. In light of these findings, a number of students were subsequently defunded, which has caused controversy and protests at several public universities, with affected students claiming they have been wrongfully defunded.
Methods Used for Fraudulent Applications
According to NSFAS spokesperson, Slumezi Skosana, in the past, students employed creative methods to defraud the organization. For instance, some students would present certified ID copies, leading NSFAS officials to believe they were legitimate applicants. Additionally, if a student provided a payslip from a parent, NSFAS would assume the information was accurate without conducting any cross-checks or verification. This lack of scrutiny allowed thousands of falsified applications to go unnoticed.
Implementation of a New System
To prevent fraudulent applications and ensure the accuracy of information, NSFAS has implemented a new system. This system involves cross-referencing the data provided on applications with external parties such as the South African Social Security Agency (Sassa), the South African Revenue Service (SARS), and the Department of Home Affairs. By verifying the personal information provided by applicants, NSFAS aims to eliminate false claims and enhance the integrity of the application process. Although there has been some resistance to these changes, NSFAS emphasizes the importance of focusing on the positive aspects of these measures.
Additional Challenges Faced by NSFAS
Apart from the issue of fraudulent applications, NSFAS has faced other challenges that have led to student protests. Delays in disbursing allowances and difficulties with the new payment system have caused dissatisfaction among students. Some students have experienced high bank charges for withdrawals, while others have not received their July allowances, which were supposed to be distributed at the beginning of the month.
The new payment system was implemented to address the problem of institutions failing to disburse allowances on time. However, it has introduced its own set of challenges. Initially, NSFAS stated that students would face a monthly bank charge of R12 and would not incur additional charges for withdrawals, but this information was found to be false. Moreover, some students had their NSFAS statuses abruptly changed from “approved” to “rejected,” resulting in halted payments. These delays have left students in dire situations, with some being evicted from their residences or unable to afford meals.
Ongoing Investigations and Discussions
NSFAS is currently investigating the allegations made by students regarding payment delays and other issues. If the claims are substantiated, the organization is committed to implementing appropriate solutions. In the meantime, discussions are underway between universities, stakeholders, student unions, and NSFAS to find viable resolutions to the challenges faced by students.
Conclusion
NSFAS has taken decisive action to address fraudulent applications by implementing a new system that verifies the information provided by applicants. While challenges and delays persist, ongoing investigations and discussions aim to rectify these issues and ensure that eligible students receive the financial aid they deserve.
