More than 80 000 National Student Financial Aid Scheme (NSFAS) beneficiaries still haven't received their allowances through the new direct-payment system.

This emerged during a meeting of the Portfolio Committee on Higher Education, Science and Innovation on Wednesday night during which the four companies appointed to administer the new system were called on to explain a myriad of problems, including the delayed payments.

According to the presentation from Tenet Technology – which had to manage payments via the new system to students at 13 TVET colleges and six universities – of the 225 000 students it was supposed to disperse allowances to, only 144 396 had actually been paid. That left some 80 604 students without funding.

Previously, NSFAS allowances – which include funds for food, books and other essentials – were paid to institutions which, in turn, paid them to students.

In June, the new direct-payment system – which sees the funds paid directly into NSFAS accounts students are issued with – was introduced in a bid to make the process more efficient.

However, problems have plagued the system, including a failure to pay the allowances on time – or at all – and high transaction costs.

The problems have led to student protests at some institutions.

NSFAS appeared before the portfolio committee last month and found itself on the receiving end of a tough grilling over the issue, after which the scheme's leadership was asked to go back and prepare comprehensive responses.

Acting chief executive officer Masile Ramorwesi and board chairperson Ernest Khosa returned on Wednesday, accompanied by a delegation from the higher education department, including Minister Blade Nzimande, as well as representatives from the companies tasked with running the new system.

By the end of the marathon sitting, which spanned more than five hours, the committee's confidence in the scheme hadn't been restored.

Commenting on Tenet's presentation, the African National Congress's Brandon Pillay said, "There are 80 604 students who, as we speak, have not received their allowances. And if that's not cause for concern, nothing else can be."

Three other companies made presentations.

However, according to committee chairperson Nompendulo Mkhatshwa, the information they provided was not enough.

Grilling them, Mkhatshwa said: "We want to know, how many have you paid? In August, how many did you pay? In July, how many did you pay? That's what we want to get to because ultimately, we are trying to close the gap between NSFAS, which says, 'we've dispersed allowances' and students who say, 'I am not a defunded student, and I have not received my allowance.'

"That's the gap we are trying to close. So when we don't have sufficient data, it really doesn't assist us much".

The companies were then asked to provide further details within seven working days.

In the meantime, NSFAS has appointed Werksmans Attorneys to investigate claims against CEO Andile Nongogo, who is on special leave.

The claims are around allegedly dodgy dealings at the Services Sector Education and Training Authority (SSETA) during his tenure at the helm there.

Other allegations are over potential irregularities in the awarding of the tenders for the new direct payment system at NSFAS. 

The portfolio committee heard on Wednesday that NSFAS was expecting to receive the resultant report within the next 10 days.