The Department of Higher Education has admitted that there have been challenges with the new National Student Financial Aid Scheme (NSFAS) direct payment system.

Higher Education Minister Dr Blade Nzimande however stressed that despite the challenges, the measures are necessary to reduce corruption. He was speaking following NSFAS CEO Andile Nongogo being placed on leave of absence, pending an investigation.

Nzimande says the NSFAS bank accounts that was implemented was aimed at reducing the number of “ghost students” in the system and delayed allowance payments.

In June, the financial aid scheme came under scrutiny after universities nationwide staged protests over the lack of communication to NSFAS beneficiaries over the shift to the direct payment system.

Some students have lambasted the scheme for wrongfully defunding some students.