Godongwana Denies R11m Pay Hike for NSFAS Head Amid Financial Scrutiny ### DATELINE: Johannesburg, South Africa – July 28, 2026 South Africa’s Finance Minister Enoch Godongwana has rejected a proposal by Higher Education Minister Buti Manamela to grant a R11m pay increase to the head of the National Student Financial Aid Scheme (NSFAS), according to reports.
The move comes amidst a broader review of the NSFAS’s financial practices and the administrator’s reported extravagant lifestyle without prior approval from Godongwana. ### NUT GRAF: The proposed pay increase for the NSFAS head was part of a larger budget allocation that included a potential R535m pay bonanza for consultants and advisers if NSFAS received budget approval.
The decision to reject the pay hike and scrutinize the NSFAS’s financial practices is seen as a move to ensure prudent financial management and address concerns about the scheme’s administrative efficiency. ### BODY: The NSFAS, a government program designed to provide financial assistance to students from low-income families, has faced numerous challenges, including financial mismanagement and administrative issues.
A recent audit revealed that the scheme had funded 822 deceased students and thousands of ineligible students, raising questions about its internal controls and financial management.
Godongwana’s decision to shoot down the pay increase for the NSFAS head is seen as a direct response to the administrator’s reported extravagant spending. Local reports indicate that the administrator was living a lavish lifestyle, including hiring four technical advisors at a cost of about R10-million per year, without the approval of Godongwana.
The NSFAS has also been under scrutiny for its financial turmoil, with the Auditor — General issuing a critical disclaimer on its 2024/25 financial statements.
This has raised concerns about the scheme’s overall financial health and the need for more transparent and accountable management. Minister Manamela, who appears to have supported the pay increase, suggested that it was necessary to attract and retain qualified personnel for the NSFAS.
However, Godongwana’s stance emphasizes the need for prudent financial management and accountability within the scheme.
### KICKER: As the South African government continues to review the NSFAS’s financial practices, the public awaits further measures to ensure the scheme’s efficiency and effectiveness in providing financial aid to students in need.
The outcome of this review could have significant implications for the future of the NSFAS and its ability to meet its objectives.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Google News v2
