NSFAS given two weeks to solve payment issues

Students have been up in arms across the country over problems with the new system.

It's understood that many of them have not receive their allowances while others have been defunded.

"The minister further directed the board that in the interest of transparency and clarifying claims surrounding the defunding of students, NSFAS should release publicly details and information of all those who have been found to have been defrauding the scheme," says Higher Education spokesperson Ishmael Mnisi. 

READ: Universities SA concerned over Nsfas payment changes

"The minister, however, notes that the NSFAS board confirmed that after the re-evaluation of funding, 14 703 applications were reinstated and 31 224 remained eligible." 

Mnisi says direct payment is a necessary measure to reduce unauthorized access to beneficiaries' allowances and payments to ghost students, among other issues.

He says the scheme has also been working with SASSA and SARS to ascertain who qualifies for the funding.

"Mr Nzimande once urges both parents and students not to defraud NSFAS as government will take stern action against all those who defraud the scheme. The minister further urges those who believe that they have been wrongfully disqualified to use the NSFAS appeals process."

NSFAS is now also investigating allegations surrounding the appointment of the four service providers to manage the payments. 

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The scheme’s CEO Andile Nongogo has been placed on a leave of absence pending the probe.

The NSFAS board said in a statement on Wednesday that the allegations relate to Nongogo’s work while in charge at the Services Sector Education and Training Authority (SETA), and how this may relate to unacceptable conduct in the awarding of bids at NSFAS.

The Organisation Undoing Tax Abuse has claimed the four new companies contracted by NSFAS are not registered financial service providers.