TUT students reject new banking system for NSFAS beneficiaries

Tshwane University of Technology's campus student representative council (CSRC) has rejected the new National Student Financial Aid Scheme (NSFAS) direct payment system called eZaga, saying it has been rushed.

The new system will see NSFAS make direct payments into bank accounts using independent service providers instead of doing it through the higher learning institutions.

CSRC secretary Keamogetswe Masike wants the scheme to exempt TUT from the process at least until 2024.

“Our university is closed, no-one is entering, no-one is exiting. Our concerns have been the same — that it can never be business as usual when a lot of our students are seated at home and have not received their allowances. If this process is legitimate and credible, we cannot have a problem with it, but the problem we are having now is that this process is rushed and it is imposed on universities,” he said.

Masike said it was not rational to implement a process of this nature during an ongoing academic process where many students are already focused on studies and exams.

NSFAS spokesperson Slumezi Skosana said the main objective in NSFAS taking over direct payment is to ensure its accountability on student allowances and to establish a better co-ordinated system for the transfer of funds to students.

Skosana said this was after a series of erroneous payments and/or delayed payments to students and incidents of alleged fraudulent transactions for which NSFAS would not assume accountability.

“There were several universities that [engaged] service providers in dispensing student allowances. NSFAS would bear no direct accountability for the action of the service providers nor the universities concerned,” he said.

Skosana said NSFAS expects the new system to be not only convenient for students but also to provide allowances in a manner that is dependable and predictable. 

The financial aid institution said its teams were dispatched to engage student representative councils and university management on direct payments and related matters.

It said during the engagements questions were raised and clarifications sought regarding the new payment system.

Responding to allegations of excessive charges and funds not reaching their intended beneficiaries, among others, Skosana said NSFAS would not allow a system that was established in good faith to be muddled with activities that defeat the purpose of direct payment.

He said they would investigate complaints made by students.

Masike said there would not be any activity in the university until they met minister of higher education Dr Blade Nzimande.

“The reason we are closing the university is that they must put the necessary pressure on DHET so that they are able to come back to the ground. The minister must come and fix his house, his house is not in order,” said Masike.

He said for now the affected campus is the main campus in Pretoria.

Meanwhile, the DA said it has written to Nzimande and the Banking Association SA (Basa) to seek clarity on the NSFAS direct payment system.

DA shadow minister of higher education Chantel King said Nzimande would have to explain how students would benefit more from the services of these financial organisations.

“We hope Basa can give clarity on the cost structure from well-established banks and whether Coinvest Africa, Tenet Technology, eZaga Holdings and Norraco Corporation are accredited financial service providers,” said King.

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