Student aid scheme failing

Parliament said yesterday it was concerned that the National Student Financial Aid Scheme (NSFAS) had regressed and received a qualified audit.

Connie September, chairperson of the legislature’s portfolio committee on higher education and training, said it would have to be convinced why the NSFAS executive management and audit committee should be retained and why the higher education and training department should continue to oversee the entity.

“The committee feels vindicated on its stance when it pointed out that disbursements were in excess of loan and bursary agreements,” September said.

“It is further alleged that unused funds were invested without approval from the National Treasury.”

The portfolio committee said the Public Finance Management Act was very clear on what remedies ought to be applied in the instance of irregular expenditure, that was first assessed to be R1.3 billion, then later R284 million.

“The committee will be urged after engagement to support the call by Auditor-General [Kimi Makwetu] that the administrative leadership [of NSFAS] must be held accountable, investigate noncompliance with the Public Finance Management Act to the extent of recovering any money,” September said.

“Of note are also irregular expenditures, deviations from both the department and other entities. Much-needed funds are required to be given to poor and disabled students, as well as to the various institutions to improve higher education and training.” – ANA