NSFAS Files Papers to Sever Ties With Fintech Service Providers

NSFAS Files Papers to Sever Ties With Fintech Service Providers

  • The National Student Financial Aid Scheme has kickstarted the process to cancel its contract with four fintech service providers
  • NSFAS beneficiaries have spoken out against the service providers for delayed payments that would take up to months before being processed
  • Freeman Nomvalo, NSFAS's administrator, said that the papers to sever the ties with them would be filed

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Tebogo Mokwena, a dedicated Briefly News current affairs journalist, contributed coverage of international and local social issues like health, corruption, education, service delivery protests and heritage in South Africa during his seven years at Daily Sun and Vutivi Business News.

NSFAS's administrator Freeman Nomvalo announced that the financial scheme has initiated proceedings to sever ties with four Fintech service providers
NSFAS has irregular arrangements with its service providers. Images: National Student Financial Aid Scheme (NSFAS)
Source: Facebook

JOHANNESBURG— The National Student Financial Aid Scheme has taken the first step in cancelling its contracts with four fintech service providers.

NSFAS to cut ties with service providers

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According to eNCA, NSFAS's administrator, Freeman Nomvalo, anticipates resistance to the papers NSFAS filed. In the past, NSFAS recipients have expressed their troubles with not receiving their allowances from Coinvest, Noracco, Tenet, and Ezaga. A Werkmans Report revealed that the companies were irregularly appointed.

Nomvalo called the relationship NSFAS has with the service providers irregular.

"This irregular arrangement is causing problems for students. The disruptions in some of the TVET colleges are a direct result of some of the service providers' work. There have been problems in some institutions as a result of the current arrangement, so there is no need for us to stay with the current arrangement as it's also costly."

NSFAS students complained about service providers

NSFAS students have spoken to Briefly News about their past struggles. One student said she had to sell her shoes to earn money to travel home because the service providers had not paid their travel allowance in December last year.

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South Africans weigh in

Netizens on Facebook shared different perspectives on the announcement-

Stan Mda said:

"Next year, they will be coming with other service providers."

Hlologelo Malatji asked:

"Irregularly appointed by who? Will the responsible parties be held accountable, or is it business as usual?"

Alfie Shelby said:

"Good move, but the damage has already been done. We're voting the m out on Wednesday."

NSFAS loses billions to ghost students

Similarly, Briefly News reported that NSFAS reportedly loses billions monthly to non-existent students.

The financial scheme continues to pay 157,980 students monthly allowances, and South Africans were furious.

Source: Briefly News

Tebogo Mokwena avatar

Tebogo Mokwena (Current Affairs editor) Tebogo Mokwena is a Current Affairs Editor at Briefly News. He has a Diploma in Journalism from ALISON. He joined Daily Sun, where he worked for 4 years covering politics, crime, entertainment, current affairs, policy, governance and art. He was also a sub-editor and journalist for Capricorn Post before joining Vutivi Business News in 2020, where he covered small business news policy and governance, analysis and profiles. He joined Briefly News in 2023. Tebogo passed a set of trainings by Google News Initiative Email: tebogo.mokwena@briefly.co.za

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