Public Protector Finds NSFAS Improperly Funded Over 40,000 Students With R5.1 Billion, SA Fumes

• Public Protector Advocate Kholeka Gcaleka released the report of an investigation into the National Student Financial Aid Scheme
• The report found that tens of thousands of students were improperly funded by the scheme, totalling billions of rands
• South Africans took to social media to weigh in on the Public Protector's report, with many expressing frustration

Byron Pillay, a Briefly News journalist, has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He worked as a newspaper journalist for 10 years before transitioning to online.

GAUTENG – The Public Protector has revealed that more than 40,000 students received National Student Financial Aid Scheme (NSFAS) funding they were not entitled to, totalling R5.1 billion.

Advocate Kholeka Gcaleka confirmed the news on Tuesday, 18 August 2026, while releasing the report of an investigation into NSFAS. Advocate Gcaleka confirmed that the students spanned 76 institutions, and noted that only R2 billion of the improperly disbursed funds had been recovered to date.

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NSFAS under scrutiny

NSFAS has faced persistent criticism over weaknesses in its verification and IT systems over the years, which investigators say enabled dual failures: ineligible and so-called "ghost" applicants received billions in bursary funding, while thousands of qualifying, financially needy students were either wrongfully rejected or received no response to their applications.

Third-party service providers contracted to manage direct allowance payouts have also drawn scrutiny, with reports of high transaction fees charged to students and repeated delays in the delivery of funds.

The Public Protector's findings add to a pattern of accountability concerns at NSFAS, following prior investigations by the Special Investigating Unit and various civil society organisations into tender and procurement irregularities, as well as conflicts of interest among officials.'

While the scheme has faced considerable criticism over the years, some students have made the most of it. In September 2024, one young lady turned her R1,400 allowance into a thriving business. In October 2024, a woman bragged that she built a room with the money.

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How did South Africans react?

The findings drew widespread reaction on social media, with many users directing their frustration at both the scheme and the broader state of governance in South Africa.

Nozi Dudu called for accountability, writing:

"Investigate the officials."

Thatha ba thatha like noted:

"Taxpayer money, not ANC money.”

Marumo Mohale said:

"Taken by those thieves on top."

Lenono Samuel Nzimande Junior pointed to the scale of the problem:

"The very same institution that has a shortfall of R15 billion is funding undeserving students at a cost of R5.1 billion."

Khaya Meshe added:

"Yoh hayi, this country is rotten. I won't be surprised if in that list there are foreign nationals."

NSFA cuts ties with corrupt service providers

In July 2024, NSFAS cut ties with four service providers due to corruption allegations.

Briefly News reported that NSFAS would no longer use Coinvest, Ezaga, Naracco or Tenet.

The companies used to distribute student allowances, but this is now done by the universities.

Source: Briefly News