Namibia Students Financial Assistance Fund faces audit concerns

An auditor general’s report has revealed significant financial management issues at the Namibia Students Financial Assistance Fund (NSFAF). As of March 31, 2025, approximately N$20.3 million in student loan repayments remained unallocated in a clearing account rather than being credited to individual borrower accounts. This delay is attributed to a moratorium on the migration to the Acumatica (AcuLoan) system, which has impacted interest calculations and loan balances.

The fund’s total student loan book stands at N$11.7 billion, with an expected credit loss allowance of N$5.34 billion, highlighting significant uncertainty regarding debt recoverability. Auditors noted that the fund recovered only N$21.5 million during the 2024/25 financial year, representing less than 1% of total student debtors. Furthermore, the fund failed to measure the loan book at amortised cost as required by International Public Sector Accounting Standard 41.

In the same period, five non-executive directors received a combined N$757,621 in retainers and sitting fees. Auditor-General Junias Kandjeke noted that the NSFAF could not provide supporting documentation or consolidated listings for a sample of student loan debtors when requested for audit verification.