The South African Union of Students (SAUS) has called for urgent reform at the National Student Financial Aid Scheme (NSFAS) after shocking findings by the auditor-general.
This comes after it was revealed that 822 deceased people continued to receive NSFAS funding. The report also found that thousands of people who did not qualify were paid.
SAUS said it “expresses its profound outrage and deep concern” over the situation. It described it as a “serious institutional failure that undermines the core mandate of NSFAS and erodes public trust”.
The student body said the issue is especially serious because many students are still struggling to get funding. “At a time when thousands of deserving students are being excluded, defunded, or left in prolonged uncertainty regarding their funding status, such mismanagement is both unacceptable and deeply unjust,” said SAUS.
It added that NSFAS is meant to help poor and working-class students. When money is misused, it directly compromises that mission and entrenches inequality.
SAUS noted that higher education minister Buti Manamela has admitted there are problems with the system used to check student information. It said this must now be followed by “urgent, decisive, and transparent corrective measures”.
The student body also recognised the work of acting NSFAS CEO Waseem Carrim, saying his efforts to improve systems and fix problems should continue.
However, SAUS said more action is needed.
“We wish to state clearly that this is not a moment for instability or reactionary responses,” it said. It called on NSFAS officials to fix the problems, take responsibility and rebuild trust.
SAUS wants stronger checks to make sure that only the right students get funding. This includes working closely with government departments like home affairs and the South African Revenue Service (Sars). It also called for a full investigation, including by the Special Investigating Unit, to track where the money went.
It said accountability must be enforced. “Those who are found to have [acted] unlawfully, negligently, or in bad faith must face clear and decisive consequences, including removal from the institution and possible legal action,” said SAUS.
The student body also wants wrongly paid funds to be recovered and for honest students not to be punished for these mistakes.
It further stressed the need for clear and consistent communication from NSFAS to students and the public, alongside long-term reforms to improve governance and systems.
SAUS said the situation highlights a deeper problem. “This scandal highlights a painful contradiction within the current system: while funds are being lost through weak controls and poor co-ordination, genuine students continue to suffer exclusion and financial hardship.”
It warned that NSFAS plays an important role in helping young people build better futures, and its failures affect many lives.
The organisation said it will continue to monitor the situation and may take further action if needed.
“The time for accountability, stability, and decisive leadership is now,” it said.
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