NSFAS systemic maladministration investigation

The South Africa — Public Protector of South Africa, Kholeka Gcaleka, released a Section 7(9) notice detailing systemic deficiencies in the administration and oversight of the South Africa — National Student Financial Aid Scheme (NSFAS). The investigation, prompted by complaints and oversight findings, revealed that more than 40,000 students across 76 higher education institutions were improperly funded to the value of approximately R5.1 billion, with over R2 billion recovered. The findings, based on a South Africa — Special Investigating Unit (SIU) investigation under Proclamation R88 of 2022, highlighted persistent governance instability, administrative weaknesses, and inadequate systems within NSFAS. Students experienced delays in funding decisions, appeal outcomes, and allowance payments, leading to food insecurity and accommodation instability. NSFAS's contact centre could not resolve 80% of queries without escalation. The investigation also found that the missing-middle funding initiative, capitalized with R3 billion, was delayed due to the need to procure a new loan system. The Close-Out Project, intended to reconcile financial data, remained incomplete, causing some graduates to have their qualifications withheld. The South Africa — Public Protector proposed remedial measures including clearing appeal backlogs, improving communication, strengthening fraud controls, and identifying responsible officials. NSFAS, DHET, and other parties have 60 days to respond before final findings are issued.