Bursaries, Scholarships & Finance
NSFAS dismisses viral image of R630k student payment as fake
18 Mar 2026
NSFAS directed to activate forensic unit to work with SIU
Higher Education and Training Minister Buti Manamela has directed the National Student Financial Aid Scheme (NSFAS) board to activate its forensic unit immediately to work with the Special Investigating Unit (SIU) on cases already under investigation, and refer identified instances of fraud and misrepresentation to the appropriate authorities.
Image source: jcomp from Freepik
The Minister, together with Deputy Ministers Mimmy Gondwe and Nomusa Dube-Ncube, took decisive action, following a recent joint meeting with the NSFAS board, its acting chief executive officer, and the Auditor-General of South Africa.
The engagement focused on the institution’s 2024/25 audit outcome and ongoing concerns around student service delivery. Following the meeting, the Minister issued a formal directive aimed at stabilising the embattled financial aid body and restoring accountability.
NSFAS challenges
NSFAS received a disclaimer of opinion for the 2024/25 financial year - the most serious audit outcome an institution can receive. According to the Auditor-General, the institution is facing deepening breakdown in governance, financial controls and accountability systems. Nine material irregularities were identified, including four newly identified cases.
While the current administration maintains that these failures are the result of longstanding institutional weaknesses, it has committed to fixing them.
Particularly alarming are findings derived from data analytics. The audit revealed that 822 beneficiaries listed as deceased in the Department of Home Affairs database continued to receive funding. Over 14,000 students exceeded the income eligibility threshold yet were funded, while 321 students were found to be receiving both NSFAS bursaries and Social Relief of Distress (SRD) grants.
In addition, tens of thousands of students, who either held prior qualifications or failed to meet academic progression criteria, continued to benefit from funding.
Manamela said these discrepancies point to significant diversion of funds intended for poor and working-class students - whether system failures, misrepresentation or fraud.
“We are not in a position yet to determine the exact proportion attributable to each cause. What we can do is investigate, recover and prevent recurrence,” Manamela said.
To address these issues, the Minister has instructed NSFAS to immediately deploy its forensic unit and collaborate with the Special Investigating Unit. All identified cases of fraud and misrepresentation are to be referred for legal action.
Officials emphasised that legitimate beneficiaries have nothing to fear, as the investigations are targeted at those who have misrepresented their circumstances, and at the system failures that allowed incorrect payments to continue.
Outrage at student accommodation crisis
The Auditor-General’s report also highlighted accommodation conditions that are unsafe and undignified living conditions, including housing near taverns, lack of reliable transport, and harassment from landlords due to delayed payments by NSFAS. Students had their belongings confiscated.
“These are not audit findings. These are violations of the basic dignity of young people who came to study, not to survive a housing crisis created by the State’s own dysfunction,” Manamela said.
The Minister has ordered an urgent audit of all accredited accommodation providers, and to suspend any provider found in breach of contract standards.
The department is also working with NSFAS to finalise a revised student accommodation policy framework aimed at strengthening accreditation standards, enforcement mechanisms, and student recourse channels. This work is expected to be concluded before the end of April 2026.
Progress amid setbacks
Despite the grim audit outcome, some progress has been recorded. The current NSFAS administration has, for the first time in several years, cleared its backlog of financial submissions and is on track to meet reporting deadlines for the 2025/26 cycle.
Four of the existing material irregularities are reportedly at a stage where the Auditor-General is satisfied with management actions.
A Loan Management and Recovery Strategy has been approved, and the South African Revenue Service has committed to reinstate data-sharing with NSFAS, a move expected to significantly strengthen eligibility verification going forward.
The CEO appointment process is also underway, including a legal review of board appointment, which is before the courts.
The meeting established a joint accountability framework between the Department of Higher Education and Training, NSFAS, and the Auditor-General. The board is required to submit a comprehensive remedial report to the Minister and Director-General by 30 April 2026, detailing corrective actions, consequence management plans, and system upgrades.
Quarterly oversight meetings will follow, with progress reports presented to Parliament’s Portfolio Committee on Higher Education.
Focus on student experience
The Minister has also prioritised student concerns, particularly delays in appeals processing. Of the 7,805 outstanding appeals, 98.8% are attributed to system failures.
NSFAS has been instructed to implement a resolution plan within three weeks and ensure that appeals are finalised within 70 days.
Students living in unsafe and substandard housing have been assured that enforcement action will be taken against non-compliant accommodation providers.
“NSFAS is being directed to audit and enforce those contracts. Any provider who cannot meet the required standards will be removed from the accreditation list,” the Minister said.
A system under repair
Addressing nearly 800,000 students who rely on NSFAS, the Minister reaffirmed that legitimate funding will not be disrupted by ongoing investigations. Instead, the focus is on building a system that is accurate, efficient and fair.
“NSFAS is not beyond repair. It is an institution that carries a mandate of enormous national importance to ensure that poverty is not a barrier to education, and that South Africa can build the skilled, capable, and educated society that its people deserve. That mandate is worth fighting for.
“We are committed to NSFAS. We are committed to the students, and we are committed to building an institution that can be trusted,” Manamela said.