EFF demands parliamentary probe into R10m advisory bill at NSFAS

The Economic Freedom Fighters (EFF) has asked parliament’s portfolio committee on higher education to investigate payments linked to the National Student Financial Aid Scheme (NSFAS) administrator after allegations that the administrator hired four technical advisors at a combined cost of about R10 million a year and incurred about R200,000 in accommodation and travel expenses since his appointment in May.

What the EFF is asking

The party, through EFF MP Sihle Lonzi, wants the committee to probe the remuneration and allowances of the NSFAS administrator and the four advisors and to seek confirmation from the finance minister on whether required approvals were obtained under the NSFAS Act.

In a letter dated 7 July addressed to committee chair Tebogo Letsie, Lonzi requested that parliament ask Finance Minister Enoch Godongwana to confirm whether approvals under Section 17C of the NSFAS Act were obtained before remuneration and allowances were paid.

Requests to Treasury

The EFF wants National Treasury to provide copies of any written approvals, the date approval was granted, and the remuneration determination made by the minister of higher education and training. The party also asked for a detailed, itemised breakdown of all remuneration, allowances and benefits paid to the administrator and each advisor since their appointments.

The requested breakdown includes salaries, air travel, transport costs, accommodation expenses, vehicle hire, subsistence allowances and any other benefits paid using public funds.

Questions of value for money and compliance

Lonzi asked Treasury to explain whether less expensive travel and accommodation options were considered and whether the arrangements complied with value-for-money principles and the Public Finance Management Act.

The letter further asked Treasury to state whether, if no approval under Section 17C exists, it considers the payments to be compliant with the NSFAS Act and the PFMA.

Responses from the portfolio committee and the ministry

Committee secretary Anele Kabingesi confirmed receipt of Lonzi’s letter and said the chair was still applying his mind on the matter.

Ministry of Higher Education spokesperson Matshepo Seedat said there was no need for an investigation because the administrator, Hlengani Mathebula, had not received a salary since his appointment.

“Travel and accommodation expenses cannot be his responsibilities, considering that he has not received a salary,”

Seedat said the minister’s request for approval of the administrator’s remuneration was only sent to Godongwana last Friday and was awaiting a response. She also said NSFAS head offices are in Cape Town and that Mathebula has had to relocate from Limpopo to the Western Cape to take up the position.

On Mathebula’s accommodation, Seedat said:

“The accommodation Mathebula took up offer government rates, at the cost of not more than R1 500 a night.”

Outstanding comments

The article notes that Mathebula had not responded to questions by the time of publication.

Why this matters

The EFF framed the matter as a concern over accountability for public funds tied to student support, asking parliament and Treasury to establish whether the alleged expenditure was authorised and compliant with the law.