Budget Not Enough – NSFAS Says
The National Student Financial Aid Scheme says that it is currently experiencing budget constraints despite the additional R32-million it recently from the government. The Scheme CEO further explains what led to their current funding issues.
The National Student Financial Aid Scheme says the extra R32-million it’s getting from the government just isn’t enough. It says its budget doesn’t match its growth. The scheme has now reached out to the private sector for help.
Speaking in an interview NSFAS CEO, Andile Nongogo said that the bursary scheme’s current budget represents 0,9% of the student funding while the norm is usually 5 to 10% to administer any kind of programme.
He adds that the majority of their budget goes to salaries and overhead costs which account for 20% of their funds.
While speaking about allegations of irregular expenditure levelled against the scheme, he said that in most circumstances irregular expenditure can mean that money has been spent without following the necessary procedures.
The regulation was stating that there has to be gazetting of the funding criteria, and therefore that’s how you then pay for students. Now unfortunately gazetting is something that was not happening.
Nongogo, further stated that the process, which was the responsibility of the Department of Higher Education, was not being done. All this happened while NSFAS had to continue paying for students.
He added that this does not mean that the organisation did have issues, hence it was put under new administration, and that they have since resolved many of their audit issues enough to regain the trust of the private sector with their funds.
Originally posted 2022-08-29 20:19:54.