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NSFAS Loses Over R21 Million a Year to Corruption



NSFAS Loses Over R21 Million a Year to Corruption

NSFAS Loses Over R21 Million a Year to Corruption. The National Student Financial Aid Scheme (NSFAS) stands as a beacon of hope for countless South African students, offering vital support for their educational pursuits.

However, recent revelations by Higher Education Minister Blade Nzimande have uncovered a troubling reality: NSFAS is hemorrhaging over R21 million annually to corruption. This article delves into the extent of the issue, its implications, and proposed solutions.

Scourge of Corruption

Under the stewardship of CEO Andile Nongongo, NSFAS faced allegations of corruption within its direct payment system. These accusations culminated in Nongongo’s dismissal, casting a shadow over the scheme’s integrity.

Nzimande revelation of the scheme losing approximately R21,446,855 to fraud and/or maladministration annually since 2017 paints a grim picture of financial mismanagement and ethical lapses.

Cycle of Mismanagement

The malaise plaguing NSFAS extends beyond financial irregularities. Students have been left in limbo due to delayed payments and inadequate accommodations, exacerbating the challenges they face in accessing higher education.

With Nzimande dissolving NSFAS’ board amidst allegations of maladministration, the need for decisive action to stem the tide of corruption has never been more urgent.

Futile Pursuit of Justice

Despite assurances of tackling corruption head-on and referrals of 14 cases to law enforcement agencies, the recovery of stolen funds remains elusive.

Nzimande admission that none of the pilfered money has been recuperated underscores the formidable obstacles in holding perpetrators accountable. The lack of tangible progress raises concerns about the efficacy of current anti-corruption measures within NSFAS.

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Looming Collapse

The South African Union of Students (SAUS) has sounded the alarm, warning of NSFAS teetering on the brink of collapse. Asive Dlaniwa, SAUS spokesperson, highlights the scheme’s faltering state, describing it as being on autopilot and failing students. The erosion of trust in NSFAS’ ability to fulfill its mandate jeopardizes the aspirations of countless students reliant on its assistance.

A Call for Reform

Amidst the turmoil, voices advocating for fundamental reform grow louder. The Independent Institute of Education (IIE) proposes a radical solution: universities assuming control of NSFAS. Dr. Linda Meyer, managing director of IIE, contends that mere cosmetic changes to the board will not suffice. Instead, she emphasizes the imperative of transparency, accountability, and robust institutional safeguards to root out corruption and rebuild trust.


The revelation of NSFAS hemorrhaging over R21 million annually to corruption is a stark reminder of the entrenched challenges facing South Africa’s education system. As the nation grapples with this scourge, decisive action is imperative to safeguard the aspirations of students and restore integrity to NSFAS. Only through concerted efforts to combat corruption and implement systemic reforms can NSFAS fulfill its crucial role in fostering equitable access to education for all.

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