Higher Education Minister Nobuhle Nkabane’s plan to open regional offices for the National Student Financial Aid Scheme (NSFAS) has ground to a halt amid legal challenges and unions’ objections.
Last year, Nkabane told Parliament that NSFAS intended to establish regional offices in KwaZulu-Natal, Eastern Cape and Gauteng amid the state-owned bursary fund incurring a staggering R2.5 million per month in rentals for its headquarters in Cape Town.
In a bid to reduce travel burdens for students and to enhance public access to financial aid, Nkabane's vision included moving NSFAS operations closer to the students they serve in provinces.
However, unions representing NSFAS staff have taken the matter to the Commission for Conciliation, Mediation and Arbitration (CCMA), opposing the proposed relocation of employees from the central office to regional branches.
In the latest development, DA MP Desiree van der Walt quizzed Nkabane why NSFAS has not moved out of the current premises.
Van der Walt had also wanted to know the date NSFAS will move to the new address of the new offices and progress made in setting up the regional offices.
Nkabane responded by revealing that the labour unions have taken NSFAS to the Commission for Conciliation, Mediation and Arbitration (CCMA) over its plan to move employees from the headquarters to set up regional offices in the provinces.
“According to the decision of the CCMA on 25 February 2025, the Decentralisation Task Team’s work is currently on hold until consultation with the majority of unions takes place at the bargaining forum.
“The procurement of new premises is part of the decentralisation process and thus affected by the CCMA,” she said.
Nkabane added that NSFAS has joined a co-applicant in the application brought by the Special Investigating Unit (SIU) to the Special tribunal to set aside the contract.
Amid the court case and CCMA process, Nkabane said the date for moving the premises was unknown at this stage because the new premises have not been procured.
“This same applies to the addresses of where these premises will be.”
However, the minister said the Decentralisaion Task Team has different work streams focusing on a new operational plan, placement of staff at regional offices and the procurement of suitable premises for its head and regional offices.
“Once the CCMA order is complied with, the work of the Decentralisaion Task team will proceed,” Nkabane said.
The minister previously envisioned that the opening of regional offices would have a positive impact on NSFAS operations and students.
There will be reduced travel costs and improved public access to the bursary fund.
“The decentralisation of NSFAS services through regional offices will enhance operational efficiency, by bringing services closer to the institutions and students they serve. This approach will streamline administrative processes and improve responsiveness,” she told the higher education portfolio committee last year.
Nkabane had stated that for the students the shift will mean quicker access to support service, more localized assistance and reduction in delays that previously existed due centralisation.
“The overall experience is anticipated to be more accessible and user-friendly, ensuring that students receive timely and efficient support,” she said.
Deputy minister of Higher Education and Training, Buti Manamela, recently told Parliament that the review of the lease formed part of initiatives to address financial and governance concerns at NSFAS.
“The department remains committed to ensure full transparency and accountability while allowing the legal process to take its course.
“Once the tribunal has ruled on the matter, the department and NSFAS will take necessary steps to implement the ruling in ensuring NSFAS‘ resources are directed at student funding rather than excessive administrative costs,” said Manamela.