Nzimande dissolves NSFAS board with immediate effect

JOHANNESBURG - The Minister of Higher Education, Blade Nzimande has dissolved the National Student Financial Aid Scheme (NSFAS) board with immediate effect.

The department said the decision was made as part of interventions meant to improve the efficiency of NSFAS.

The funding scheme has also been placed under administration from Thursday.

Nzimande is expected to hold a media briefing on Sunday to explain the reasons that led to this decision.

It comes shortly after the department confirmed the resignation of the board's former chairperson, Ernest Khosa.

Over the last year, NSFAS has been riddled with challenges, including allegations of corruption from Organisation Undoing Tax Abuse (OUTA) bringing about more issues for the embattled funding scheme.

When the direct payment system was implemented in June 2023, thousands of students were left stranded without allowances.

This led to backlash from students, who rejected the system.

In October, its CEO Andile Nongogo was fired for interfering with processes to appoint service providers.

In December, OUTA released a report and leaked audio implicating Khosa in corruption.

Khosa took leave of absence in January, with the department confirming his resignation yesterday.