Zuko Komisa
- The Auditor-General found NSFAS paid bursaries to 822 deceased students and thousands of ineligible high-income applicants.
- Minister Buti Manamela admitted to systemic failures in cross-checking Department of Home Affairs and income data.
- Authorities face calls for criminal investigations into the fiscal leakage as students nationwide struggle with funding delays.
The National Student Financial Aid Scheme (NSFAS) is facing intense public backlash after an Auditor-General’s report revealed that the organisation continued to disburse bursaries to over 800 students recorded as deceased.
The investigation found that 822 individuals listed as dead in the Department of Home Affairs database remained on the active funding list, highlighting a critical failure in the scheme’s internal verification and data-sharing processes.
Beyond the payments to deceased individuals, the report disclosed that thousands of ineligible applicants whose household incomes exceeded the mandatory threshold also received funding intended for South Africa’s most impoverished learners.
Higher Education Minister Buti Manamela has acknowledged these “serious deficiencies,” admitting that vital resources meant for poor and working-class students have been diverted due to a lack of rigorous cross-referencing with income and death records.
The scandal has drawn comparisons to the “ghost employee” phenomenon within government departments, sparking calls for the Special Investigating Unit (SIU) and the Hawks to intervene.
Critics have highlighted the irony of the situation, noting that many living, eligible students frequently face bureaucratic hurdles or funding withdrawals due to strict academic checks, while hundreds of dormant accounts continued to receive public money undetected.
While the total financial loss has not been specified, even modest disbursements to over 800 accounts represent a significant drain on the fiscus.
NSFAS, which supports over a million students annually, now faces mounting pressure to overhaul its systems.
Proposed fixes include the implementation of automated death notifications and enhanced eligibility audits to restore accountability and prevent further misuse of state funds.
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