In a decisive move to address longstanding governance and operational failures at the National Student Financial Aid Scheme (NSFAS), Minister of Higher Education and Training, Kgwaridi Buti Manamela, convened a high-stakes joint accountability session on March 25, 2026. Joined by Deputy Ministers Dr Mimmy Gondwe and Dr Nomusa Dube-Ncube, the meeting brought together the NSFAS Board, Acting Chief Executive Officer, and Auditor-General Tsakani Maluleke. The focus was unyielding: the shocking disclaimer audit outcome for the 2024/25 financial year—the most severe verdict possible—and its ripple effects on South Africa's higher education landscape.

NSFAS, established to bridge financial barriers for poor and working-class students pursuing studies at public universities and Technical and Vocational Education and Training (TVET) colleges, supports nearly 800,000 learners annually. Yet, systemic breakdowns have diverted critical funds, leaving genuine beneficiaries in limbo while sparking widespread protests and eroding trust in the post-school education and training (PSET) sector.

🔍 Unpacking the Joint Accountability Meeting

The session laid bare NSFAS's deepening crisis, with Minister Manamela emphasizing that these were not mere administrative slips but violations undermining student dignity and access to education. Discussions centered on audit irregularities, service delivery failures, and exploitative practices in student housing. The outcome was a formal Ministerial Directive, mandating immediate corrective actions and establishing a rigorous oversight framework.

Attendees agreed on the urgency: NSFAS must evolve into a reliable entity that processes applications accurately, disburses funds promptly, secures decent accommodation, and resolves appeals swiftly. This meeting signals a shift from rhetoric to enforced accountability, with the Department of Higher Education and Training (DHET) committing to monthly progress reports and quarterly joint sessions.

Audit Nightmare: Disclaimer Opinion and Core Failings

The Auditor-General's report painted a grim picture. NSFAS earned a disclaimer of opinion, meaning auditors could not obtain sufficient evidence to form an assurance on financial statements. Nine material irregularities were flagged, four newly declared, stemming from prolonged leadership instability and ignored prior recommendations.

Financial controls collapsed, governance weakened, and accountability evaporated. Data analytics exposed egregious errors: payments continued despite clear red flags from integrated systems. Minister Manamela described it as a 'deepening breakdown,' diverting resources meant for deserving students at institutions like the University of Cape Town, University of Witwatersrand, and various TVET colleges nationwide.

Shocking Irregularities: 822 Deceased Students Funded

One of the most horrifying revelations: 822 students listed as deceased in the Department of Home Affairs database still received NSFAS bursaries. This ghost funding persisted unchecked, alongside over 14,000 beneficiaries from households exceeding the R350,000 annual income threshold.

Additionally, 321 students double-dipped, claiming both NSFAS aid and the Social Relief of Distress (SRD) grant. Tens of thousands more violated academic progression rules or held prior qualifications, yet funding flowed unabated. These lapses, whether from system glitches, misrepresentation, or outright fraud, siphoned millions from the scheme's R50+ billion annual budget.

• Deceased beneficiaries: 822 cases, highlighting failed Home Affairs data cross-verification.
• Ineligible by income: 14,000+, bypassing household verification protocols.
• Double-dipping: 321 with SRD grants, undetected inter-agency sharing.
• Academic non-compliance: Thousands funded despite failures or duplicates.

The Private Accommodation Debacle

Beyond payments, NSFAS's handling of private student housing emerged as a flashpoint. Thousands endure unsafe, undignified conditions breaching contracts: residences near taverns, inadequate transport stranding students at night, and landlords resorting to threats, harassment, and seizing belongings over delayed NSFAS payouts.

Private providers, accredited but unregulated in practice, exploit vulnerabilities. Recent OUTA investigations warned of billions at corruption risk in this opaque system. Minister Manamela decried it as a 'housing crisis created by state dysfunction,' directing an immediate full audit of all providers. Non-compliant ones face suspension, with a new policy framework due by April's end.Read the full official directive here.

Photo by Hennie Stander on Unsplash

Minister Manamela's Sweeping Directives

The directive is comprehensive and time-bound:

• Activate NSFAS's forensic unit to partner with the Special Investigating Unit (SIU) on probes, referring fraud to law enforcement.
• Audit every accredited private accommodation provider; suspend violators promptly.
• Deliver a remedial masterplan by April 30, 2026, detailing fixes for audit repeats, consequence management (naming officials), data resolutions, ICT upgrades, HEMIS integration, SARS data pacts, and funding model sustainability.
• Clear 7,805 appeal backlogs (98.8% system-induced) within three weeks, capping waits at 70 days.
• Finalize accommodation policy by late April, bolstering accreditation and recourse.

Quarterly accountability sessions kick off July 2026, with parliamentary updates.

Progress Amid the Chaos

Not all is bleak. NSFAS cleared financial submission backlogs, aligning with Public Finance Management Act (PFMA) deadlines for 2025/26. Four irregularities resolved to Auditor-General satisfaction; loan recovery strategy approved; SARS data-sharing resumption imminent. CEO recruitment advances amid board review.

Yet, Minister Manamela stressed these gains do not excuse regression. For 2026, NSFAS approved 1.24 million students, disbursing over R6.3 billion early—692,704 first-timers and 550,959 continuers—prioritizing tuition at universities and TVETs.TimesLIVE details the disbursements.

Historical Scandals Fueling the Fire

NSFAS woes trace back years: 2024 CEO resignation amid tender scandals, SIU recoveries exceeding R1.7 billion, R5 billion+ irregular allocations. Protests at Durban University of Technology (DUT), University of Johannesburg (UJ), and others over delays. Fees Must Fall echoes persist, with mismanagement burdening universities via unpaid fees and dropouts.

Studies show NSFAS halves dropout rates, yet corruption erodes efficacy. PSET enrollment surged 59% to 980,000, amplifying pressure.

Impacts on Universities and TVET Colleges

Unis like Stellenbosch and UKZN face cashflow crises from delayed NSFAS transfers, halting services. TVETs report enrollment dips amid funding fears. Protests disrupt classes; 189,222 students failed progression criteria yet strained resources.

Minister's reforms promise hybrid models, direct university payments, and data integrations to stabilize. For 2026, R4.27 billion upfront to institutions aids readiness.

Stakeholder Perspectives and Protests

Student unions like SAUS demand SIU probes; DUT SRC urges calm amid violence. Opposition slams 'unacceptable,' calls criminal charges. Universities push direct funding bypasses. Manamela reassures: genuine qualifiers safe.

Photo by Sibusiso Mbatha on Unsplash

Reforms Roadmap and Future Outlook

By May 31, Auditor-General assesses progress. ICT modernization, HEMIS linkage, SARS pacts aim permanence. Sustainable model debates loom—full bursary vs. loans for 'missing middle' (R350k-R600k).

Optimism tempers caution: robust NSFAS vital for Viksit Bharat-like skilled youth. With enforcement, South Africa's higher ed can reclaim equity.NSFAS media updates.