Cape town: The Ministry of Higher Education and Training has defended the governance and administration costs of the National Student Financial Aid Scheme (NSFAS), stating that the current administration has adopted a leaner and more cost-effective technical support model compared to previous governance structures.
According to South African Government News Agency, the Ministry emphasized that public scrutiny of the expenditure of public funds is both legitimate and necessary but stressed that discussions should be based on verified facts and the applicable legal framework. NSFAS, which administers more than R50 billion annually in student financial aid, has operated under different governance arrangements over the years, each with its own governance and management costs.
The Ministry detailed that the current administration has appointed four specialist advisers to support the NSFAS Administrator in implementing a time-bound institutional stabilisation programme. The combined annual remuneration of these advisers is about R9.9 million. This is compared to technical support costs of approximately R16.5 million a year under one previous administration and R19.6 million under an earlier administration. The remuneration for the former NSFAS Board and its committee structures reached about R31 million during the 2025/26 financial year.
The Ministry clarified that these governance arrangements are not identical and should not be treated as direct comparisons. Each governance structure performs different functions, and the current administration has adopted a smaller and less costly technical support structure while ensuring access to the necessary expertise to execute its mandate.
The purpose of the current appointments is to restore governance, strengthen financial controls, improve operational performance, modernize systems, and rebuild institutional capability, rather than create additional bureaucracy. The Ministry also clarified that the appointment of the NSFAS Administrator and technical advisers are separate from the statutory process governing remuneration and allowances under Section 17C of the NSFAS Act. The Minister of Higher Education and Training has engaged the Minister of Finance in accordance with the Act and will continue to cooperate with all lawful oversight processes.
The administration's priorities include restoring sound governance and internal controls, strengthening financial management and audit readiness, developing a sustainable student funding model, modernizing NSFAS through digital transformation, improving applications, appeals, and student support services, and rebuilding public confidence in the institution. The Ministry reaffirmed its commitment to ensuring that the current administration restores the institution to stability and leaves behind a stronger, more accountable, and more effective NSFAS.
