NSFAS is facing renewed outrage after the Auditor-General revealed that the National Student Financial Aid Scheme continued to pay bursaries to more than 800 students recorded as deceased, while thousands of ineligible applicants also received funding meant for the country’s poorest learners.
According to the investigation, 822 students listed as dead in the Department of Home Affairs database remained on NSFAS’s active funding list. In addition, thousands of students who exceeded the income threshold and therefore did not qualify were also paid.
Higher Education Minister Buti Manamela confirmed the findings, acknowledging that they expose serious deficiencies in
NSFAS’s verification processes. Funds intended for poor and working-class students have been diverted due to inadequate cross-checking with death records and income data.
The scandal has sparked widespread outrage on social media, with many South Africans comparing it to the persistent problem of “ghost employees” in government departments.
Critics have called for urgent intervention by the Special Investigating Unit (SIU) and the Hawks, questioning how such payments could continue undetected and urging authorities to trace where the money has gone.
Some have pointed out the irony, as living students often struggle to secure or retain NSFAS funding due to strict academic and eligibility checks.
NSFAS, which supports over a million students annually, has faced repeated criticism for inefficiencies, including payment delays, fraud allegations, and weak systems integration. This latest disclosure underscores the need for better data-sharing between government departments and tighter controls to prevent the misuse of public funds.
No exact monetary figure for the overpayments was provided in the report, but even modest monthly disbursements to 822 accounts would represent a significant leakage from the fiscus.
As calls grow for accountability, the Department of Higher Education and NSFAS are expected to face increased pressure to implement immediate fixes, including automated death notifications and enhanced eligibility audits.