Sunday Times

How bursary fund was rescued

- By PREGA GOVENDER

● When Randall Carolissen was appointed administra­tor of the National Student Financial Aid Scheme (NSFAS) in August 2018, it was “on the brink of collapse”.

Most students did not get funding for up to eight months of that year, “causing considerab­le hardship and disruption in the higher education sector”.

Carolissen, 58, said that “critical governance processes failed, there was an unfavourab­le organisati­onal climate and a culture of entitlemen­t stymied delivery”.

These were some of the reasons why higher education minister Blade Nzimande’s predecesso­r, Naledi Pandor, assigned Carolissen to take over the scheme, which gives bursaries to eligible students at universiti­es and colleges. His term ends on August 20.

Carolissen was seconded to the scheme. He is head of research at the South African Revenue Service (Sars), where he manages the collection of revenue, among others.

He has proposed assisting those who matriculat­ed in 2017 and before but failed to qualify for financial aid because their family’s annual income was above the R122,000 threshold. In 2018, this was raised to R350,000.

He said this was because of the increased “cries for help” from people who did not get a chance to study at university.

Within days of Carolissen being appointed, the scheme’s executive officer, Steven Zwane, resigned.

It was on the first day of his disciplina­ry hearing amid allegation­s of maladminis­tration against him.

Carolissen also upgraded security at the scheme’s Wynberg offices in Cape Town after confidenti­al files disappeare­d.

“An individual was charged with disclosing sensitive NSFAS informatio­n to a third party. He pleaded guilty and was dismissed,” said Carolissen.

Under his watch, criminal and academic vetting of all staff was conducted and led to dismissals.

“We have arrested a number of people and we have also handed over about 71 cases to the Special Investigat­ing Unit [SIU].”

Last year the scheme was criticised for scrapping the voucher system that forced students to buy textbooks from bookseller­s to a value of R5,000 for each student.

Under the new system, students were given R5,000 in cash for learning materials.

The Alliance for Academic Success, which included the South African Bookseller­s Associatio­n and the Publishers Associatio­n of SA, said at the time that book sales had dropped sharply because students were not buying books.

Carolissen said the voucher system was stopped because it was “limited to selected merchants that monopolise­d the market”.

“There was no financial freedom for the

We have arrested a number of people and we have also handed over about 71 cases to the Special Investigat­ing Unit

students on where to buy books, including [from] second-hand retailers.”

The scheme also had reports of bookseller­s allowing students to use the vouchers to buy gifts and non-educationa­l items.

Carolissen said Nzimande had found a bookseller that conspired with an electronic­s shop to have book vouchers exchanged for music centres and flatscreen TVs.

He said that of the 289,265 returning students, 30,890 would not get funding because they did not meet academic requiremen­ts or had failed to complete their courses within the specified time.

All students eligible for funding this year would receive bursaries, said Carolissen.

“NSFAS funds are provided by the National Treasury and at this stage there are no concerns around budget availabili­ty.”

This year the government will provide R34.5bn to the scheme to support students from poor and working-class background­s in their studies at technical and vocational education colleges and universiti­es.

Carolissen said that, according to the department of higher education’s enrolment projection­s, the scheme would fund about 513,614 students at colleges and 469,978 at universiti­es.

For the first time, the scheme will also use Sars data to verify the salaries of applicants and also to check if they have private wealth, for example income from dividends or rentals.

“You could be earning a very low salary but you could be extremely rich because you live off dividend income or rental income. In the past those things were not checked.”

According to Carolissen, R36bn is owed by 861,568 students for loans issued since the inception of the scheme in 1999.

A total of R628.6m was recovered from debtors between April 2018 and March 2019 while R1.06bn was written off as bad debts during the period.

Nzimande heaped praise on Carolissen this week, saying “there have been significan­t improvemen­ts in operations at NSFAS since the appointmen­t of the administra­tor”.

 ?? Picture: Simphiwe Nkwali ?? When Randall Carolissen became the administra­tor for the student loan scheme, it was near collapse. Now it will fund almost a million students.
Picture: Simphiwe Nkwali When Randall Carolissen became the administra­tor for the student loan scheme, it was near collapse. Now it will fund almost a million students.

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