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NSFAS Payment Controversy: A Call for Collective Accountability



NSFAS Payment Controversy: A Call for Collective Accountability. The recent suspension of National Student Financial Aid Scheme (NSFAS) CEO Andile Nongogo amid

NSFAS Payment Controversy: A Call for Collective Accountability. The recent suspension of National Student Financial Aid Scheme (NSFAS) CEO Andile Nongogo amid an investigation into potential irregularities in bid awards is a promising step toward addressing concerns. However, the ongoing payment controversy involves not just Nongogo, but also the NSFAS board and Higher Education Minister Blade Nzimande.

Shared Responsibility

While Nongogo’s actions are under scrutiny, it’s crucial to acknowledge the roles played by both the NSFAS board and Minister Nzimande in the unfolding “direct payment” debacle. The controversy isn’t solely about Nongogo; it’s about the collective decisions and oversight that have contributed to the situation.

Denying Accountability

In the face of serious allegations and findings by the Organisation Undoing Tax Abuse (Outa), both the NSFAS board and Minister Nzimande have sought to distance themselves from the problems tied to the new payment system. They have consistently downplayed students’ concerns and Outa’s findings, insisting that the system is secure, safe, and tailored to students’ needs.

Ministerial Disconnect

Minister Nzimande’s unwavering support for the system, even after Nongogo’s suspension, reveals a disconnect from the challenges students are facing. His endorsement of the system as a remedy for unauthorized access, ghost students, and delayed payments contradicts the firsthand experiences of students who are grappling with its adverse effects.

Implementation Inconsistencies

The appointment of companies like eZaga, Tenet, Coinvest, and Noracco to manage payment distribution has resulted in outcomes that starkly contradict the system’s intended goals. Students are encountering allowances delays, payment inconsistencies, and instances of fraudulent transactions on their accounts, all of which directly challenge the assurances made by the NSFAS board and Minister Nzimande.


Structural Weaknesses

The companies tasked with distributing allowances lack robust systems to ensure accuracy and transparency. Financial aid practitioners (FAPs) at universities have raised concerns about the absence of effective checks and balances. The inability to track payments and the occurrence of incorrect allowances further underscore the deficiencies in the new payment system.

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Revamping the System

The shortcomings of the direct payment system are undeniable, as it has failed to deliver on fundamental objectives like banking safety, timely allowance disbursement, and accurate payment allocation. While Nongogo bears responsibility, the NSFAS board must also address their role in selecting inexperienced service providers. Student initiatives, such as approaching the public protector and petitioning against the system, underscore the urgency of the situation.


The ongoing controversy surrounding NSFAS’s direct payment system isn’t confined to the actions of its CEO. Accountability extends to the entire ecosystem: the NSFAS board and Minister Nzimande. Addressing the issue requires a comprehensive evaluation of decisions made by all stakeholders. Through collective action, transparency, and improved governance, the higher education sector can begin to overcome the challenges posed by the flawed payment system.

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