Higher Education Minister Buti Manamela has ordered a full-scale investigation into the National Student Financial Aid Scheme (NSFAS) following alarming findings by the Auditor-General of South Africa.
The audit revealed that 822 individuals listed as deceased in the Department of Home Affairs database were still recorded as active NSFAS beneficiaries. In addition, more than 14,000 students whose household incomes exceed the scheme’s qualifying threshold were found to be receiving funding.
The report further highlighted serious concerns over student accommodation, describing conditions as unsafe, undignified, and in breach of contractual agreements between NSFAS and service providers.
Manamela said the findings point to a growing breakdown in governance, financial controls and accountability within the scheme. He has since directed the NSFAS board to activate its forensic unit and collaborate with the Special Investigating Unit to probe the irregularities.
Higher Education spokesperson Matshepo Seedat confirmed that the department is working to finalise a revised student accommodation policy framework. The new framework is expected to strengthen accreditation standards, enforcement mechanisms and channels for student complaints, with completion set for April 2026.
Despite the probe, Manamela assured that legitimate beneficiaries would not be affected. NSFAS currently funds approximately 800,000 students, and the investigation will focus specifically on cases of fraud, misrepresentation and systemic failures.
“NSFAS is not beyond repair,” Manamela said, reaffirming the institution’s critical role in ensuring that financial hardship does not prevent access to higher education. He added that stricter oversight measures have been introduced, including monthly reporting to the Minister and ongoing evaluation by the Auditor-General.
The minister stressed that the investigation aims to restore integrity within the system, warning that those who have misrepresented their circumstances will face consequences, while qualifying students will continue to receive support uninterrupted.