MBABANE – A recommendation that government scholarship function should remain under the Ministry of Labour and Social Security has been made by the Senate Portfolio Committee of the ministry, chaired by Senator Stukie Motsa.
This recommendation follows the committee’s findings that housing the scholarship function within a financial institution may compromise equitable access to funding, particularly for students from disadvantaged backgrounds.
The committee noted that such institutions are primarily driven by financial viability and may impose stringent lending conditions.
It further observed that this shift risks prioritising loan recovery over access to education, potentially excluding deserving but financially vulnerable students.
In making its recommendation, the committee emphasised that retaining the function under the ministry would ensure that access to funding is guided by principles of equity and social development rather than commercial considerations.
In addition, the committee recommended that the ministry should explore ways of depositing collected scholarship funds into an independent account rather than the Consolidated Fund. It was brought to the ministry’s attention that this approach would ensure the funds are ring-fenced, transparently managed and readily available to revolve and support new students in need of scholarships.
In response, the ministry stated that its strategy is indeed to revolve recovered funds, hence ongoing efforts to establish a semi-autonomous entity.
It highlighted that these efforts are currently on hold while the ministry works in collaboration with the Ministry of Finance.
Furthermore, the ministry has engaged the Office of the Attorney General for guidance on establishing the semi-autonomous scholarship model.
The ministry was also urged to develop strategies for the recovery of funds from beneficiaries residing and working outside the country who still owe scholarship repayments.
In response, the ministry explained that it collaborates with the Ministry of Public Service, particularly in cases where employees formally communicate their intention to leave service. Through the Treasury Department and the Public Service Pensions Fund, outstanding grants are then recovered before their departure.
However, the ministry acknowledged that recovery becomes challenging when officers leave without reporting their departure.
It added that the Ministry of Foreign Affairs and International Cooperation is working on regulating the exodus of emaSwati.
Nevertheless, the Ministry of Home Affairs and other stakeholders will need to be engaged to strengthen efforts in recovering outstanding funds.
An analysis for the past financial year, up to the third quarter, indicates that a gross total of E57 083 843.12 was collected during the reporting period from three government collection points.
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