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National Gazette No. 43345, 21 May 2020, Vol 659, Page 5

20200521 - National Gazette No 43345 of 21-May-2020, Volume 659, page 5

Page	5 of 12
Gazette	National Gazettes, No 43345, from 21 May, 2020
Department	Higher Education & Training
Notice	Page No. 3 of 10, Notice No. 584, Treasury Regulations (2005), Regulation 20 » Appointment of Ministerial Committee of Inquiry to Conduct an Independent Investigation into the Business Processes, Systems and Capacity of the National Student Financial Aid Scheme

STAATSKOERANT, 21 MEI 2020                         No. 43345    5

The root causes of these problems are multiple and complex, and relate to problems in the
                  areas of business processes, policy and controls, and staffing capacity. The core problems
                  relate to, but are not restricted to, an inadequate information technology architecture and
                  system and business processes that are not fit-for-purpose and were designed without
                  adequate consultation with and consideration of institutional systems. While there have been
                  internal reviews of these systems, recommendations have not been fully implemented at this
                  stage. However, the entity has itself identified some serious control and system weaknesses
                  that are being urgently addressed.
                  With the introduction of substantial new student funding from government, along with a
                  range of new policy considerations, and taking into account the existing weaknesses in the
                  entity, the challenges facing NSFAS in these areas became acute. This led to the Minister of
                  Higher Education and Training placing NSFAS under Administration in August 2018, for an
                  initial period of 12 months. A second phase of Administration commenced in August 2019.
                  Many of the problems, and additional concerns have been unearthed during the period of
                  Administration thus far. Although the 2019 student funding cycle was much better managed,
                  and there is evidence of significant improvements, some of the core problems identified
                  above remain.
                  The Minister has decided to appoint a Ministerial Committee of Inquiry to conduct an
                  independent investigation into the root causes of the systems, process, policy and capacity
                  challenges and to make recommendations about the short and long-term changes necessary
                  for an effective student financial aid system at NSFAS.

Role of NSFAS Management
                  The NSFAS Management and Administration team will be expected to work closely with the
                  Committee of Inquiry and provide all relevant reports, reviews and investigations undertaken
                  by the NSFAS to the investigation team. The investigation should not repeat recent review
                  and investigative work already done, but rather take this into consideration in its investigation.
                  It must also ensure alignment with any related work being undertaken at NSFAS.

Scope of the investigation
                  The scope of the investigation is to determine the root causes of the problems experienced
                  with the roll out of the "student-cehtred" model at NSFAS and the implementation of the new
                  bursary scheme from 2018, and make recommendations for the future business processes,
                  systems, policies and capacity necessary at NSFAS to administer student financial aid
                  effectively.

The investigation must include an assessment of what should be done to make the current
                  systems and processes 'fit for purpose' for the future.

The investigation will lay the basis for a set of proposals for the longer-term future of the
                  student funding model for the DHET bursary scheme and other government funding schemes
                  already supported through NSFAS.

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