NSF stipend delays put spotlight on project management failures
· Citizen
The National Skills Fund (NSF) has come under scrutiny over persistent stipend payment problems.
These problems are affecting hundreds of young people enrolled in an artisan and aviation training programme, with MPs questioning whether the fund properly monitors the project.
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The Portfolio Committee on Higher Education and Training received an update from the NSF in Parliament on Wednesday. The update focused on the payment of stipends to beneficiaries of the programme previously implemented by Phila Jordan Capital (PJC).
The committee said the problems had left vulnerable young people struggling to pay for accommodation, food, and transport. These issues persist while they are attending training.
Committee chairperson Tebogo Letsie said delayed payments affected more than individual beneficiaries.
“Every delay places them under immense pressure and threatens their ability to continue with the programme,” Letsie said.
He added: “So, if you are not paying, you are not only affecting one learner; there’s an entire ecosystem that you disturb.”
NSF questioned over payment monitoring
According to the NSF presentation, the original PJC project was approved at R353.99 million. The aim was to train 800 beneficiaries under the Artisan Development Programme.
The NSF terminated its agreement with PJC on 26 May 2026 following what it described as persistent non-compliance. The fund said PJC had relocated beneficiaries without approval, interrupted learning and incurred expenditure that could not be reconciled.
The NSF’s presentation records that 757 beneficiaries were paid their April stipends, while 701 were paid for July. It said the August stipend was due to be paid by 11 September. Furthermore, one beneficiary remained outstanding for April and 57 beneficiaries for July because of the reconciliation of supporting documents.
The presentation also stated that May and June stipends had not been paid.
A legal opinion indicated that payment could constitute possible fruitless and wasteful expenditure.
Letsie questioned whether the NSF had accurate information about stipend payments. He said the project manager should have known whether beneficiaries had been paid and maintained regular contact with them.
“These serious contradictions suggest that the project manager is not involved in the project’s day-to-day operations,” Letsie said.
PJC breaches led to project rescue
The NSF said PJC relocated beneficiaries in January and again in April without the required approval. Its presentation records that some beneficiaries were left destitute, while accommodation, transport, and attendance problems disrupted the project.
The fund subsequently appointed Denel Technical Academy to rescue the project.
The Denel project was approved for R170.04 million to support 761 remaining beneficiaries over the project period. The NSF said 557 beneficiaries were in apprenticeship programmes and 204 in work-integrated learning.
The NSF also reported that the transition from PJC to Denel created implementation gaps. These included challenges with onboarding beneficiaries, contract signing, physical verification and the Basic Accounting System.
It said Denel, in consultation with the NSF, provided interim assistance for stipend payments and accommodation. This occurred while registration and fund-transfer processes were being finalised.
Committee demands closer oversight
The committee said that, as the funder, the NSF remained responsible for managing and overseeing the project.
Members questioned why problems were being attributed to third parties. They believed inadequate NSF project management was a central issue.
The committee also questioned whether warning signs had been missed as early as January and February. This was when PJC failed to meet its obligations.
Letsie said the programme was intended to equip vulnerable young people with skills. The aim was to help them enter the mainstream economy, making their welfare and training a priority.
The committee recommended that it visit the affected beneficiaries alongside the Minister of Higher Education and Training and the NSF. The goal was to hear directly from them.
The NSF’s recovery plan includes stabilising the Denel project, improving monitoring, ensuring consistent stipend payments, and finalising outstanding financial reconciliations. It expects the stabilisation process to be completed by the end of October.
The committee said it would also examine the NSF’s project management shortcomings more closely. This would include failures in communication, payment monitoring and oversight.