Probe into fraud at student aid scheme

The country's universities and technical and vocational education and training colleges have been hit by student protests with classes being brought to a halt across the higher education sector. The Tshwane University of Technology, University of Johannesburg and the University of the Witwatersrand have been particularly hard hit.

Central to the protests has been that the National Student Financial Aid Scheme has not provided enough funding for poor students who qualify for funding or bursaries.

National Student Financial Aid Scheme CEO Musulwa Daca and Minister of Higher Education and Training Blade Nzimande. Image credit: Sowetan

Nzimande, addressing Parliament's higher education committee, said he had ordered an investigation into the allegations of fraud and corruption at the scheme because they threatened the stability of the entire higher education sector. The terms of reference had been finalised and bids were being advertised for suitably qualified people to run the inquiry.

Committee chairwoman Yvonne Phosa said inadequate funding by the National Student Financial Aid Scheme lay at the heart of the student protests and that even returning students at Tshwane University of Technology were not funded.

Nzimande told the committee that R9.5bn had been allocated to the scheme for the 2015 academic year and that despite the challenges of the protests the "government continues to put a lot of money into support for poor students who qualify for loans and bursaries".

Some political parties, which he declined to name, were exploiting the situation in higher education institutions and this politicisation of the issue was contributing to the continuing protests.

Democratic Alliance MP Belinda Bozzoli asked Nzimande if another R1bn could be found to defuse the protests. He also requested a relaxation of admissions targets set for universities and colleges.

"We are always looking for more money," Nzimande said but indicated there was little chance of additional funds for the scheme being found.

Relaxing the admissions targets was "a tough one" because there was a huge demand for places in higher education institutions, he said.

African National Congress MP Julie Killian expressed concern at the high cost of tertiary education and asked what progress had been made in the investigation of these high costs.

The minister responded that he was investigating the "cost drivers" in the sector. This probe would also look at the possible control of increases in academic fees. "Why can one institution increase by 6% and another 12%?" Nzimande asked.

About 205,000 first-time students and continuing eligible students at universities would receive funding, along with 200,000 students at technical and vocational education and training colleges.

Last year, the student aid scheme provided loans and bursaries of more than R8.3bn.