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Public Protector Says NSFAS Failed to Fulfil Its Mandate as Students Pay the Price

The scheme recovered more than R2 billion after investigators found control failures that left students improperly funded and qualifications withheld.

  • On Tuesday, Public Protector Kholeka Gcaleka reported that the National Student Financial Aid Scheme improperly funded over 40,000 students across 76 institutions to the tune of R5.1 billion.
  • The Special Investigating Unit launched an investigation in 2022 under presidential authority, uncovering that NSFAS has operated in a 'near-permanent state of crisis' and faced administration three times since 2018.
  • Administrative failures included a contact centre unable to resolve 80% of queries without escalation, while delays in the Close-Out Project withheld student qualifications. Gcaleka noted these failures materially affected students' "dignity, welfare and ability to participate in higher education."
  • Higher Education and Training Minister Buti Manamela must establish a reform committee within 30 calendar days, per Public Protector Gcaleka's orders. Officials must also report on implementation within 100 days or justify any failure to comply.
  • The Pretoria High Court suspended administrator Professor Hlengani Mathebula's appointment on August 14, citing governance instability. Judge Neil Labuschagne ruled the board remains functional while authorities work to recover over R2 billion in mismanaged funds.
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The South African broke the news in Cape Town, South Africa on Tuesday, August 18, 2026.
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