South Africa’s Parliament is set to summon four intermediary companies that received a combined R559 million from the National Student Financial Aid Scheme (NSFAS), according to News24. The move follows mounting scrutiny of the state fund’s operations and its use of third-party service providers.
News24 reports that the parliamentary summons targets the four intermediaries as part of an ongoing review into NSFAS spending. The fund, which provides financial aid to university and college students, has faced repeated criticism over mismanagement and inefficiency.
The R559 million figure highlights the scale of payments routed through private intermediaries, raising questions about oversight and value for money. According to News24, the summons is intended to compel the companies to account for their work and payments before Parliament.
The development comes amid broader concerns about NSFAS. BusinessTech reported that the R50 billion fund is under investigation, while Daily Maverick has called for the removal of Deputy Higher Education Minister Buti Manamela, describing the situation at NSFAS as an “unbelievable mess.” The Mail & Guardian also noted fresh uncertainty after a court suspended the fund’s administrator.
The Democratic Alliance, as reported by EWN, has argued against replacing one dysfunctional system with another and called for a fundamental overhaul of how NSFAS is funded and managed.
Parliament’s decision to summon the intermediaries signals a more aggressive oversight stance. The hearings are expected to test whether the fund can demonstrate accountability for its spending and whether the companies involved can justify the payments they received.
What to watch next: whether the parliamentary hearings produce evidence of impropriety or lead to policy changes in how NSFAS contracts intermediaries.
