NSFAS pursues legal action for smooth allowance disbursements

By Lee-Yandra Paulsen

The Administrator of the National Student Financial Aid Scheme (NSFAS), Sithembiso Nomvalo announced yesterday that the agency is pursuing legal action to terminate contracts with direct payment providers to ensure smoother disbursement of student allowances.

Rudie Heyneke, Organisation Undoing Tax Abuse’s Investigation Manager, shared his insights on the matter during an interview with VOC Breakfast on Tuesday.

“These contracts should be terminated because last year, students encountered numerous issues with their allowances. Some received them late, while others didn’t receive them at all. In January, there were still outstanding allowances from 2023 that were only paid in January. I believe that implementing a genuine direct payment system will alleviate these problems,” Heyneke emphasized.

Heyneke reflected on NSFAS’s recent actions, stating, “Since Mr. Nomvalo took over as administrator, there have been several positive developments at NSFAS. They are taking steps such as pursuing legal action against service providers responsible for direct payments to students.”

“Additionally, they are implementing the recommendations of the Werkmans Attorneys report regarding disciplinary actions against NSFAS employees involved in irregular tender processes.”

He further mentioned that NSFAS engaged with various stakeholders, including accommodation and transport providers, student organizations, and Outa.

“I am hopeful that these efforts will transform NSFAS into an organization that fulfills its mandate of providing financial assistance to students from disadvantaged backgrounds,” Heyneke concluded.

VOC News

Photo: Facebook/ National Student Financial Aid Scheme

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Aneeqa Du Plessis

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