Public Protector Kholeka Gcaleka addresses the media. Photo Credit: Luyanda Danca/NNA News

NNA News - More than 5.1 billion rand was incorrectly allocated to over 40,000 students across 76 higher education institutions through NSFAS, according to findings in a comprehensive investigation into student funding released by the Public Protector. Well over 2 billion rand has been recovered so far, the Public Protector's office announced, referring to findings reported by the Special Investigating Unit to Parliament's Standing Committee on Public Accounts. 

Public Protector Kholeka Gcaleka stated the investigation followed complaints about student access to financial aid. There were also concerns about administration and governance. She added that these problems were not isolated and reflected wider failures across the higher education sector.“These issues were systemic in nature and were of significant public interest and importance to the people of South Africa,” Gcaleka said.

The investigation was also influenced by an auditor-general's warning about NSFAS's 2024/25 financial statements. The instability that led to the NSFAS board being dissolved and placed under administration in 2026. Along with the investigations by the Special Investigating Unit into claims of mismanagement and financial irregularities. "These developments re-emphasised concerns regarding the governance and administration of NSFAS and the broader higher education funding system,” Gcaleka said.

Gcaleka explained her office confirmed the existence of systemic deficiencies. The investigation centres on the administration, governance, funding, and oversight of student financial aid. “The investigation accordingly concerns more than the administrative performance of a single public entity.” Gcaleka detailed that the investigation examined whether the state's mechanisms for providing student financial aid were "reasonable, coherent, lawful, effective, and responsive within available resources".

Public Protector officials during the briefing. Photo Credit: Luyanda Danca/NNA News

The investigation found recurring delays in funding decisions, appeals and allowances. “These delays caused direct and foreseeable prejudice, including food insecurity, accommodation instability and exposure to unsafe living conditions,” the Public Protector said. “Such outcomes demonstrate that NSFAS's failures were not merely technical or internal but materially affected students’ dignity, welfare and ability to participate in higher education,” the Public Protector said.

Acting Executive Manager for National Investigations Davndri Veronika Pillay said conditions for funded students had deteriorated. “There are poor living conditions and unsafe accommodations for students. Students are experiencing evictions due to delayed payments. Students are also going without food because allowances are not paid on time,” Pillay said. “There are unequal allowance amounts across institutions, and there is, in general, a lack of effective coordination between NSFAS, institutions and accommodation providers,” Pillay highlighted.

The Public Protector's notice also highlighted issues regarding student accommodation. The investigation specifically addressed delays in allowance payments and inadequacies in the accreditation process for private accommodation. The office stressed it would conduct a separate, own-initiative systemic investigation into accommodation. The investigation also found that NSFAS was unable to resolve 80% of contact centre queries. Internal units had to escalate most issues. Gcaleka described the situation as “severe inaccessibility", which has left students unable to get help with matters affecting their right to further education.

Public Protector House in South Africa. Photo Credit: Luyanda Danca/NNA News

Gcaleka's office reported NSFAS's mandate was particularly important, as it was one of the main mechanisms through which the state sought to expand access to higher education. “NSFAS occupies a central statutory and constitutional role in advancing access to further education for poor and working-class students,” the Public Protector said. “Independent reviews, including the Ministerial Committee of Inquiry (2021), concluded that NSFAS has functioned in a near-permanent state of crisis,” the Public Protector said.

Following the release of the report, Higher Education and Training Minister Buti Manamela welcomed the findings and said the problems were not new. “The issues identified in the report are not new. They are among the longstanding governance, administrative and operational challenges at NSFAS,” the department said. It stated those challenges contributed to the decision to place NSFAS under administration.

The investigation found that 12 complaints involving underpayment of tuition fees, collectively amounting to 601,000 rand, had left students unable to obtain certificates after completing their studies. The accounts were ultimately settled following intervention by the Public Protector. “Although these students have completed their studies, the withholding of certificates limits their ability to access employment, pursue further studies and participate meaningfully in the labour market,” the office said.

The Public Protector also raised concerns regarding the sluggish process of determining eligibility for funding. It pointed out issues with using data from outside sources and poor connections between NSFAS and different organisations, like the Department of Home Affairs, SASSA, and SARS. The office stressed that the findings were provisional. Gcaleka said, “Issuing a notice under section 7(9) of the Public Protector Act lets those affected share their views, which could lead the Public Protector to change their conclusions.”

The notice recommends stronger oversight of NSFAS, plans to address funding and appeals backlogs, improved financial controls and reconciliation, and greater integration between NSFAS and other government systems.