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The Portfolio Committee on Higher Education and Training said it is greatly concerning that the National Student Financial Aid Scheme (NSFAS) has regressed and received a qualified audit.

Committee Chairperson Ms Connie September said the committee will have to be convinced why the executive management and the audit committee should be retained at the entity – and why the Department of Higher Education and Training (DHET) officials, tasked with overseeing NSFAS, must still oversee the entity.
“The committee feels vindicated on its stance when it pointed out that disbursements were in excess of loan and bursary agreements. It is further alleged that unused funds were invested without approval from the National Treasury.”

The committee supports the appointment of the Administrator, but cannot accept that the Public Finance Management Act (PFMA) should violated any further. The PFMA is very clear on what remedies and consequence management ought to be applied in the instance of irregular expenditure that was first assessed to be R1.3 billion, then later R284 million.

The committee will tomorrow receive briefings on Annual Reports from both the department and its entities. Parliament will be occupied with budget review for all departments in the last term of the year.

Ms September said the committee must still look at what steps can be taken at the previous board. “The committee will be urged after engagement to support the call by the Auditor-General that the administrative leadership must be held accountable, investigate non-compliance with the PFMA to the extent of recovering any money.
“Of note, are also irregular expenditures, deviations from both the department and other entities. Much-needed funds are required to be given to poor and disabled students, as well as to the various institutions to improve higher education and training.”

She said no effort should be spared in improving the skills base the country requires in order to eradicate unemployment. Any regression in accounting on expenditure negates these objectives.

Issued by The Parliamentary Communication Services on Behalf of The Chairperson