NSFAS under fire: Godongwana slams mismanagement, CEO salary, and inefficiency
Minister of Finance Enoch Godongwana has strongly criticised the National Student Financial Aid Scheme (NSFAS), saying that if it were up to him, he would even close the institution
Image: Ayanda Ndamane / Independent Newspapers
Minister of Finance Enoch Godongwana has strongly criticised the National Student Financial Aid Scheme (NSFAS), saying that if it were up to him, he would even close the institution tomorrow with his "eyes closed.”
Godongwana’s comments come as the financial aid scheme continues to face reports of mismanagement, said to have severely affected its ability to effectively distribute funds to students.
The minister said that NSFAS has become an unnecessary intermediary, as universities are capable of managing student funding directly.
“If I had the option to close the National Student Financial Aid Scheme, I would do it with my eyes closed. It will be gone tomorrow.” Godongwana said.
He added that the scheme’s management has been problematic, pointing out that the CEO reportedly earns R4 million annually and that NSFAS has outsourced work it was originally created to perform.
"Because what does NSFAS do? NSFAS is supposed to be taking money from the Department of Higher Education and transferring it to universities. We don't need that kind of thing.
"We just need to transfer money to universities, since the universities do the task. But we created some strange thing called NSFAS, and the CEO, I was telling the president how much this is. He said, I can't believe, are they earning more than me? I said, Yes".
Godongwana also said that any attempt to close the institution would likely face resistance from students and staff, who have become strong defenders of the scheme.
"The CEO of NSFAS earns R4m. But not only have they done that, they've also decided to outsource their own work. They've employed four other service providers to do what they were created to do".
"I can tell you now, I can tell you even students, that everybody has been co-opted into defending this thing. If we were to close it tomorrow, you would see some protests in universities. So, this route is also difficult to pursue".
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