THE TERTIARY EDUCATION FINANCIAL AID BILL, 2020
BILL
To ensure the enjoyment and realization of the right to basic State-funded education as provided for by Section 75 of the 2013 Constitution. Pursuant to this Section, this Bill establishes the Tertiary Education Financial Aid Scheme (TEFAS), a company recognized in terms of relevant Zimbabwean laws to provide for the management, governance and administration of the Tertiary Education Financial Aid Scheme; to provide for the granting of loans and bursaries to students at public higher and tertiary education institutions and for the administration of such loans and bursaries; and to provide for matters antecedent thereto.
PREAMBLE
WHEREAS it is desirable to ensure equal access to tertiary education for every Zimbabwean Youth
WHEREAS it is necessary to establish an expanded tertiary education financial aid scheme that is affordable and sustainable
BE IT THEREFORE ENACTED by the Parliament of Zimbabwe, as follows
CHAPTER 1
DEFINITIONS AND PURPOSE
Definitions
1. In this Act unless the context otherwise indicates;
‘board’ means the TEFAS board referred to in Section 3;
‘borrower’ means a student to whom a loan has been granted in this Act;
‘bursar’ means a student to whom a bursary has been granted in terms of this Act;
‘Department’ means the Government department responsible for education at national level;
'employer' means any person or body who employs a borrower;
'higher and tertiary education' means all learning programmes leading to qualifications higher than Form 6 (A level) or its equivalent
'higher education institution' means a public higher education institution, including but not limited to universities, polytechnic colleges, teachers colleges.
'loan' means a loan granted to a person by the TEFAS in order to enable the person to defray the costs connected with his or her education at any higher education institution, and with the board and lodging of that person for purposes of attending the institution;
'Minister' means the Minister of Higher and Tertiary Education;
‘PPCHTE’ means Parliamentary Portfolio Committee on Higher and Tertiary Education.
'student' means any person enrolled as a student at a higher education institution as distinguished from a registered student;
‘TEFAS’ means the Tertiary Education Financial Aid Scheme established by Section 3.
‘ZIMCHE’ means the Zimbabwe Council on Higher and Tertiary Education as established in terms of the relevant Act
Purpose of Act
2. (1) The purpose of this Act is to ensure access of necessary financial aid to everyone enrolled at a higher and tertiary education institution or otherwise qualified to enrol and has been admitted to study at any tertiary education in Zimbabwe but is not able to pay for the expenses of higher and tertiary education.
(2) To establish a financial aid scheme for students at higher and tertiary education institutions.
CHAPTER 2
ESTABLISHMENT, COMPOSITION, GOVERNANCE AND FUNCTION OF TEFAS
Establishment of National Student Financial Aid Scheme
3. (1) The Tertiary Education Financial Aid Scheme (TEFAS) is hereby established as a juristic person subject to relevant laws of Zimbabwe in its operation.
(2) The TEFAS is managed and governed by the TEFAS Board.
Functions of the TEFAS
4. (1) The functions of TEFAS are as follows:
a. Allocate funds for loans and bursaries to applicants;
b. Develop criteria and conditions for the granting of loans and bursaries;
c. Raise funds;
d. Recover loans;
e. Maintain and analyse a database and undertake research for the better utilising of financial resources;
f. Advise the Minister on matters relating to financial aid; and
g. Perform other functions assigned to it by this Act or by the Minister
(2) The criteria and conditions mentioned in subsection (1) (b) above should take into consideration the purpose of the Act and be subject thereto.
Composition of the board
5. (1) Subject to subsection (4), the board consists of-
a. 11 appointed members of whom-
i. one member must be nominated by the Zimbabwe Council on Higher and Tertiary Education; and
ii. One member must be nominated by the Minister of Finance;
b. Not more than three members nominated by the Parliamentary Portfolio Committee on Higher and Tertiary Education;
c. The Chief Executive Officer who is the secretary without voting rights.
(2) The selection and appointment of members must be undertaken in such a manner as to ensure, insofar as is practically possible, that
a. the functions of the TEFAS in terms of this Act are performed according to the highest professional standards;
b. the membership taken as whole-
i. is broadly representative of the higher education system and related interests;
ii. has deep knowledge and understanding of higher education;
iii. has financial expertise and experience;
iv. appreciates the role of the higher education system in reconstruction and development; and
v. has known and attested commitment to the interests of higher education; and
c. Due attention is given to representivity of the board on such relevant grounds as race, gender and disability.
(3) The Minister must, by notice in the Gazette and a national newspaper, and by any other means regarded necessary by him or her, invite nominations for the 11 appointed members of the board from-
a) the public;
b) national organisations representing students, academic employees, employees other than academic employees, university officials, polytechnic officials, higher education college officials, organised business and organised labour; and
c) Non-governmental organisations.
(4) The Minister must consider the nominations as contemplated in subsection (3), and from the persons so nominated, the Minister must appoint-
a) 11 members of the board; and
b) one of the 11 members as chairperson of the board.
(5) At least three of the members contemplated in subsection (4) (a) must be appointed on account of their particular financial experience and expertise.
(6) The board may co-opt not more than four members.
Term of office of members
6. (1) The chairperson of the board holds office for a period of four years.
(2) An appointed member of the board holds office for a period of four years.
(3) A co-opted member of the board holds office for a period determined by the board.
(4) A member of the board may not serve for more than two consecutive terms of office.
Vacation of office by members
7. .A person ceases to be a member of the board if he or she-
a. resigns by giving written notice to the chairperson or, in the case of the chairperson, to the Minister;
b. is absent from three consecutive meetings of the board without the leave of the chairperson or, in the case of the chairperson, the leave of the executive committee;
c. is declared insolvent, is removed from an office of trust by a court of law or is convicted of an offense involving dishonesty or an offence for which the sentence is imprisonment without the option of a fine; or
d. is declared unable to attend to his or her personal affairs by a court of law.
Filling of vacancies
8. If a member vacates his or her office, the resultant vacancy must be filled by appointment or co-option in accordance with section 5.
Executive officer and employees of TEFAS
9. (1) A judge of the High Court may act as an executive officer to
1. Manage the affairs of the TEFAS
2. Perform the functions determined by the board
3. Supervise the employees of the TEFAS
4. Carry oversight of the way the board conduct its affairs
5. account for the assets and liabilities of the NSFAS.
(2) The board may appoint such other employees as it deems necessary to assist the executive officer.
(3) The board must, with the concurrence of ZIMCHE and PPCHTE, determine the conditions of service of the executive officer and the other employees of the TEFAS.
Executive Committee
10. (1) The board must establish an executive committee and determine its functions.
(2) The executive committee consists of-
a) The chairperson
b) Member representing the Ministry
c) Three other members who appointed by the board; two of which are from students representative organizations or non-governmental organizations.
(3) A decision of the executive committee must be regarded as a decision of the board, unless such decision is revoked at the next meeting of the board.
(4) Anything done in consequence of a decision of the executive committee before its revocation is not invalid by reason only of the fact that the decision is revoked by the board under subsection (3).
Finance committee
11. (1) The board must appoint a finance committee consisting of-
a. The chairperson of the board
b. The member appointed from the ministry of finance
c. The member appointed from the ministry of higher and tertiary education
d. Not more than five financial experts who may be from private sector or members of the board
(2) The finance committee is responsible for the financial management of the NSFAS, which includes but is not limited to, loan recovery, fund raising and investment of repayments
(3) The finance committee must advise the board with regard to the granting of loans and bursaries.
(4) The finance committee performs such other functions as the board may delegate or assign to it.
Other committees
12. (1) The board may establish other committees in addition to the executive committee and the finance committee, to assist it in the performance of its functions.
(2) Any committee other than the executive committee may include persons who are not members of the board.
(3) The chairperson of a committee must be appointed by the board.
(4) Members of the committees contemplated in subsection (2) may be appointed for such period or periods as the board may determine.
(5) In appointing members of any committee, the board is mandated to appoint at least 50% youths into the board.
Meetings of the board
13. (1) Meetings of the board and its committees must be held at such times and places as may be determined by the chairperson concerned, but the chairperson must convene a meeting at least twice a year or if asked to do so in writing by at least one third of the members of the board or the committee or by the Minister, as the case may be.
(2) Whenever the chairperson is absent from any meeting of the board or a committee, the members present must elect a person from among themselves to preside at that meeting.
(3) The board may make rules relating to the procedure at meetings of the board and its committees, including the quorum for such meetings, and any other matter necessary or expedient for the performance of its functions.
(4) The proceedings at a meeting of the board or of a committee are not invalid by reason only of the fact that a vacancy exists on the board or such committee, as the case may be, at the time of such meeting.
Funds of TEFAS
14. (1) The funds of TEFAS consist of-
a. Money appropriated by Parliament;
b. Money specifically set aside for such purposes on the annual budget presented before Parliament by the Minister of Finance
c. Donations or contributions
d. Interest
e. Money repaid or repayable by borrowers
f. Any other income sourced and received by TEFAS
(2) Companies, corporations, societies, associations, firms, organizations; public or private that choose to partner with TEFAS in funds will enjoy substantial and lucrative tax holidays.
(3) The TEFAS finance committee shall be responsible for drafting proposals for the tax holidays mentioned in subsection (2) above which shall be submitted to the Minister of Finance for consideration.
(4) The Minister of Finance in consideration of the proposal by the TEFAS finance Committee has powers only to increase or decrease the tax holiday and not to completely reject such. In decreasing the tax holiday, the minister must be guided by the lucrativeness of the tax holiday.
(5) The board
a. must keep records of all funds received and spent and of all assets, liabilities and financial transactions;
b. must in each financial year, at such time and in such manner as the Director-General may determine, submit a statement of its estimated income and expenditure for the ensuing financial year to the PPCHTE for its approval granted with the concurrence of the Executive Officer;
c. may in any financial year submit adjusted statements of its estimated income and expenditure to the PPCHTE for its approval, granted with the concurrence of the Executive Officer; and
d. may not incur any expenditure which exceeds the total amount approved in terms of paragraphs (b) and (c).
(6) If the PPCHTE does not approve the board's statement of its estimated income and expenditure, the PPCHTE must require the board to provide a revised statement within a specified period to it.
(7) The money contemplated in subsection (1 )and (2)must be used by the TEFAS in accordance with the approved statement referred to in subsection (5), and any unexpended balance must be carried forward as a credit to the following financial year.
(8) Subject to subsection (7), the board may invest any portion of its funds in such manner as the PPCHTE, with the concurrence of the Executive Officer, may approve.
(9) The TEFAS may not conduct a business.
(10) The TEFAS may borrow money with the approval of the Minister, but such money may only be used for the granting of loans.
Annual Audit
15. The books of account and financial statements of the TEFAS must be audited at the end of each financial year by the Auditor-General.
Annual report
16. (1) The board must, within three months after the end of each financial year, publish a report which must at least include a financial statement on the performance of its functions during the past financial year. Copies of the published report are to be submitted to the Minister.
(2) The Minister must table copies of the report in Parliament as soon as reasonably practicable.
Remuneration and allowances of members of the board and committees
17. The chairperson of the board, every other member and any person appointed as a member of a committee, who is not in the full-time service of the State may, in respect of services rendered by him or her in connection with the affairs of the board or a committee, be paid by the TEFAS
a. such travelling, subsistence and other allowances; and
b. in the case of the chairperson of the board, such additional remuneration, as the Minister with the concurrence of the Minister of Finance may determine.
CHAPTER 3
ADMINISTRATION OF LOANS AND BURSARIES
18. Any student or anyone who has been enlisted to begin their tertiary education at any tertiary education institution may, subject to the provisions of this Act, apply in writing to the TEFAS for a loan or a bursary on an application form determined by the board.
Conditions of loans and bursaries
19. (1) Loans or bursaries granted by the board may be subject to such conditions as it may determine, either generally or in respect of a particular loan or bursary.
a) Such conditions mentioned in subsection (1) above should take into consideration the need to make tertiary education accessible to all through financial aid.
(2) A loan or bursary is granted in respect of a particular course of study being undertaken or to be undertaken, which must be specified in the loan or bursary agreement in question, and may not be used for any other purpose.
(3) A written agreement must be entered into between the TEFAS and every borrower and bursar.
(4) The board may impose a condition in respect of any loan or bursary to the effect that if the borrower or bursar defers, or discontinues with his or her studies for any reason; the board may terminate the granting of finance in terms of the agreement and demand that any obligation which applies to the borrower or bursar as a result of the granting of the loan or bursary be complied with on or with effect from the date specified by the board.
(5) The amount of the loan or bursary to be used for tuition fees is paid by the TEFAS to the tertiary education institution concerned by way of allocations in respect of amounts payable to the institution by the borrower or bursar. The remaining amount necessary for other expenses such as rentals will be payable directly into the student’s account.
(6) The TEFAS may agree with any particular higher and tertiary education institution to administer loan and bursary applications for the purposes of easy access.
CHAPTER 4
RECOVERY OF LOANS
Repayment of loans
20. (1) A loan must be repaid as provided in the loan agreement.
(2) Notwithstanding anything to the contrary contained in a loan agreement, a borrower may repay a loan wholly or in part before the due date. Repayment of the loan extends to a minimum period of up to 2 years after graduation of the said applicant.
(3) If a borrower fails to make repayments as provided in this Act, his or her name may be placed on any list of defaulting debtors published by any person or body whose business it is to compile and publish such lists.
(4) The name of a borrower may not be placed on a list contemplated in subsection (3) unless he or she-
a. has been notified by registered letter addressed to his or her chosen domicilium citandi et executandi, of the failure to make repayments and of the intention to act in terms of subsection (3); and
b. has been afforded a reasonable opportunity to pay the arrear amount and has failed to do so.
(5) A borrower whose name has been placed on a list contemplated in subsection (3) has the right to approach a court of law if he or she is of the opinion that reasonable grounds exist for the removal of his or her name from the list.
Obligations of borrower
21. (1) A borrower must for as long as he or she is indebted to the TEFAS-
a. at such intervals as may be fixed by the board, furnish the board-
i. with his or her postal and residential addresses, as well as his or her chosen domicilium citandi et executandi;
ii. with information regarding his or her employment status;
iii. if he or she is employed, with the name and address of the employer; and
iv. with any other relevant information required by the board; and
b. immediately notify the board of-
i. any change of address and furnish the new address;
ii. any change in his or her employment status; and
iii. any change of employer and furnish the name and address of the new employer.
(2) Any failure by a borrower to comply with the obligations referred to in subsection (1) will, if the board so decides, have the effect to render the loan immediately repayable.
Obligations of employer
22. (1) The board may by written notice sent by registered mail inform the employer of a borrower that the borrower is indebted to the TEFAS in consequence of a loan which was granted by the TEFAS to the borrower and of the deductions that the employer has to make from the remuneration of the borrower.
(2) Any employer who is given notice in terms of subsection (1) is obliged to make deductions from the remuneration payable by him or her to the borrower according to the scales prescribed by regulation.
(3) Any amount deducted by an employer in terms of subsection (2) must be paid over to the TEFAS, and any amount so paid over must be a proportionate discharge of the loan by the borrower concerned.
(4) Any amount deducted in terms of this section must for the purposes of the applicable law, be regarded as forming part of the remuneration of the borrower.
(5) Any employer who fails to make a deduction in accordance with the provisions of this section is liable to pay to the TEFAS the amount which the employer failed to deduct, and such liability of the employer may be enforced by the NSFAS in any manner which may be available to the NSFAS at law.
Obligations of the government
23. For the purposes of ensuring that loans granted by TEFAS are paid by every borrower at the appropriate time, the government has an obligation to ensure that as much graduates churned out are employed either in private or public sector.
CHAPTER 5
GENERAL
Information to be provided to TEFAS
24. Every national and provincial department of state, every publicly funded science, research and professional council, every higher education institution and any other person or body who grants loans or bursaries to students must provide the TEFAS with such information as the TEFAS may reasonably require for the performance of its functions in terms of this Act.
BILL
To ensure the enjoyment and realization of the right to basic State-funded education as provided for by Section 75 of the 2013 Constitution. Pursuant to this Section, this Bill establishes the Tertiary Education Financial Aid Scheme (TEFAS), a company recognized in terms of relevant Zimbabwean laws to provide for the management, governance and administration of the Tertiary Education Financial Aid Scheme; to provide for the granting of loans and bursaries to students at public higher and tertiary education institutions and for the administration of such loans and bursaries; and to provide for matters antecedent thereto.
PREAMBLE
WHEREAS it is desirable to ensure equal access to tertiary education for every Zimbabwean Youth
WHEREAS it is necessary to establish an expanded tertiary education financial aid scheme that is affordable and sustainable
BE IT THEREFORE ENACTED by the Parliament of Zimbabwe, as follows
CHAPTER 1
DEFINITIONS AND PURPOSE
Definitions
1. In this Act unless the context otherwise indicates;
‘board’ means the TEFAS board referred to in Section 3;
‘borrower’ means a student to whom a loan has been granted in this Act;
‘bursar’ means a student to whom a bursary has been granted in terms of this Act;
‘Department’ means the Government department responsible for education at national level;
'employer' means any person or body who employs a borrower;
'higher and tertiary education' means all learning programmes leading to qualifications higher than Form 6 (A level) or its equivalent
'higher education institution' means a public higher education institution, including but not limited to universities, polytechnic colleges, teachers colleges.
'loan' means a loan granted to a person by the TEFAS in order to enable the person to defray the costs connected with his or her education at any higher education institution, and with the board and lodging of that person for purposes of attending the institution;
'Minister' means the Minister of Higher and Tertiary Education;
‘PPCHTE’ means Parliamentary Portfolio Committee on Higher and Tertiary Education.
'student' means any person enrolled as a student at a higher education institution as distinguished from a registered student;
‘TEFAS’ means the Tertiary Education Financial Aid Scheme established by Section 3.
‘ZIMCHE’ means the Zimbabwe Council on Higher and Tertiary Education as established in terms of the relevant Act
Purpose of Act
2. (1) The purpose of this Act is to ensure access of necessary financial aid to everyone enrolled at a higher and tertiary education institution or otherwise qualified to enrol and has been admitted to study at any tertiary education in Zimbabwe but is not able to pay for the expenses of higher and tertiary education.
(2) To establish a financial aid scheme for students at higher and tertiary education institutions.
CHAPTER 2
ESTABLISHMENT, COMPOSITION, GOVERNANCE AND FUNCTION OF TEFAS
Establishment of National Student Financial Aid Scheme
3. (1) The Tertiary Education Financial Aid Scheme (TEFAS) is hereby established as a juristic person subject to relevant laws of Zimbabwe in its operation.
(2) The TEFAS is managed and governed by the TEFAS Board.
Functions of the TEFAS
4. (1) The functions of TEFAS are as follows:
a. Allocate funds for loans and bursaries to applicants;
b. Develop criteria and conditions for the granting of loans and bursaries;
c. Raise funds;
d. Recover loans;
e. Maintain and analyse a database and undertake research for the better utilising of financial resources;
f. Advise the Minister on matters relating to financial aid; and
g. Perform other functions assigned to it by this Act or by the Minister
(2) The criteria and conditions mentioned in subsection (1) (b) above should take into consideration the purpose of the Act and be subject thereto.
Composition of the board
5. (1) Subject to subsection (4), the board consists of-
a. 11 appointed members of whom-
i. one member must be nominated by the Zimbabwe Council on Higher and Tertiary Education; and
ii. One member must be nominated by the Minister of Finance;
b. Not more than three members nominated by the Parliamentary Portfolio Committee on Higher and Tertiary Education;
c. The Chief Executive Officer who is the secretary without voting rights.
(2) The selection and appointment of members must be undertaken in such a manner as to ensure, insofar as is practically possible, that
a. the functions of the TEFAS in terms of this Act are performed according to the highest professional standards;
b. the membership taken as whole-
i. is broadly representative of the higher education system and related interests;
ii. has deep knowledge and understanding of higher education;
iii. has financial expertise and experience;
iv. appreciates the role of the higher education system in reconstruction and development; and
v. has known and attested commitment to the interests of higher education; and
c. Due attention is given to representivity of the board on such relevant grounds as race, gender and disability.
(3) The Minister must, by notice in the Gazette and a national newspaper, and by any other means regarded necessary by him or her, invite nominations for the 11 appointed members of the board from-
a) the public;
b) national organisations representing students, academic employees, employees other than academic employees, university officials, polytechnic officials, higher education college officials, organised business and organised labour; and
c) Non-governmental organisations.
(4) The Minister must consider the nominations as contemplated in subsection (3), and from the persons so nominated, the Minister must appoint-
a) 11 members of the board; and
b) one of the 11 members as chairperson of the board.
(5) At least three of the members contemplated in subsection (4) (a) must be appointed on account of their particular financial experience and expertise.
(6) The board may co-opt not more than four members.
Term of office of members
6. (1) The chairperson of the board holds office for a period of four years.
(2) An appointed member of the board holds office for a period of four years.
(3) A co-opted member of the board holds office for a period determined by the board.
(4) A member of the board may not serve for more than two consecutive terms of office.
Vacation of office by members
7. .A person ceases to be a member of the board if he or she-
a. resigns by giving written notice to the chairperson or, in the case of the chairperson, to the Minister;
b. is absent from three consecutive meetings of the board without the leave of the chairperson or, in the case of the chairperson, the leave of the executive committee;
c. is declared insolvent, is removed from an office of trust by a court of law or is convicted of an offense involving dishonesty or an offence for which the sentence is imprisonment without the option of a fine; or
d. is declared unable to attend to his or her personal affairs by a court of law.
Filling of vacancies
8. If a member vacates his or her office, the resultant vacancy must be filled by appointment or co-option in accordance with section 5.
Executive officer and employees of TEFAS
9. (1) A judge of the High Court may act as an executive officer to
1. Manage the affairs of the TEFAS
2. Perform the functions determined by the board
3. Supervise the employees of the TEFAS
4. Carry oversight of the way the board conduct its affairs
5. account for the assets and liabilities of the NSFAS.
(2) The board may appoint such other employees as it deems necessary to assist the executive officer.
(3) The board must, with the concurrence of ZIMCHE and PPCHTE, determine the conditions of service of the executive officer and the other employees of the TEFAS.
Executive Committee
10. (1) The board must establish an executive committee and determine its functions.
(2) The executive committee consists of-
a) The chairperson
b) Member representing the Ministry
c) Three other members who appointed by the board; two of which are from students representative organizations or non-governmental organizations.
(3) A decision of the executive committee must be regarded as a decision of the board, unless such decision is revoked at the next meeting of the board.
(4) Anything done in consequence of a decision of the executive committee before its revocation is not invalid by reason only of the fact that the decision is revoked by the board under subsection (3).
Finance committee
11. (1) The board must appoint a finance committee consisting of-
a. The chairperson of the board
b. The member appointed from the ministry of finance
c. The member appointed from the ministry of higher and tertiary education
d. Not more than five financial experts who may be from private sector or members of the board
(2) The finance committee is responsible for the financial management of the NSFAS, which includes but is not limited to, loan recovery, fund raising and investment of repayments
(3) The finance committee must advise the board with regard to the granting of loans and bursaries.
(4) The finance committee performs such other functions as the board may delegate or assign to it.
Other committees
12. (1) The board may establish other committees in addition to the executive committee and the finance committee, to assist it in the performance of its functions.
(2) Any committee other than the executive committee may include persons who are not members of the board.
(3) The chairperson of a committee must be appointed by the board.
(4) Members of the committees contemplated in subsection (2) may be appointed for such period or periods as the board may determine.
(5) In appointing members of any committee, the board is mandated to appoint at least 50% youths into the board.
Meetings of the board
13. (1) Meetings of the board and its committees must be held at such times and places as may be determined by the chairperson concerned, but the chairperson must convene a meeting at least twice a year or if asked to do so in writing by at least one third of the members of the board or the committee or by the Minister, as the case may be.
(2) Whenever the chairperson is absent from any meeting of the board or a committee, the members present must elect a person from among themselves to preside at that meeting.
(3) The board may make rules relating to the procedure at meetings of the board and its committees, including the quorum for such meetings, and any other matter necessary or expedient for the performance of its functions.
(4) The proceedings at a meeting of the board or of a committee are not invalid by reason only of the fact that a vacancy exists on the board or such committee, as the case may be, at the time of such meeting.
Funds of TEFAS
14. (1) The funds of TEFAS consist of-
a. Money appropriated by Parliament;
b. Money specifically set aside for such purposes on the annual budget presented before Parliament by the Minister of Finance
c. Donations or contributions
d. Interest
e. Money repaid or repayable by borrowers
f. Any other income sourced and received by TEFAS
(2) Companies, corporations, societies, associations, firms, organizations; public or private that choose to partner with TEFAS in funds will enjoy substantial and lucrative tax holidays.
(3) The TEFAS finance committee shall be responsible for drafting proposals for the tax holidays mentioned in subsection (2) above which shall be submitted to the Minister of Finance for consideration.
(4) The Minister of Finance in consideration of the proposal by the TEFAS finance Committee has powers only to increase or decrease the tax holiday and not to completely reject such. In decreasing the tax holiday, the minister must be guided by the lucrativeness of the tax holiday.
(5) The board
a. must keep records of all funds received and spent and of all assets, liabilities and financial transactions;
b. must in each financial year, at such time and in such manner as the Director-General may determine, submit a statement of its estimated income and expenditure for the ensuing financial year to the PPCHTE for its approval granted with the concurrence of the Executive Officer;
c. may in any financial year submit adjusted statements of its estimated income and expenditure to the PPCHTE for its approval, granted with the concurrence of the Executive Officer; and
d. may not incur any expenditure which exceeds the total amount approved in terms of paragraphs (b) and (c).
(6) If the PPCHTE does not approve the board's statement of its estimated income and expenditure, the PPCHTE must require the board to provide a revised statement within a specified period to it.
(7) The money contemplated in subsection (1 )and (2)must be used by the TEFAS in accordance with the approved statement referred to in subsection (5), and any unexpended balance must be carried forward as a credit to the following financial year.
(8) Subject to subsection (7), the board may invest any portion of its funds in such manner as the PPCHTE, with the concurrence of the Executive Officer, may approve.
(9) The TEFAS may not conduct a business.
(10) The TEFAS may borrow money with the approval of the Minister, but such money may only be used for the granting of loans.
Annual Audit
15. The books of account and financial statements of the TEFAS must be audited at the end of each financial year by the Auditor-General.
Annual report
16. (1) The board must, within three months after the end of each financial year, publish a report which must at least include a financial statement on the performance of its functions during the past financial year. Copies of the published report are to be submitted to the Minister.
(2) The Minister must table copies of the report in Parliament as soon as reasonably practicable.
Remuneration and allowances of members of the board and committees
17. The chairperson of the board, every other member and any person appointed as a member of a committee, who is not in the full-time service of the State may, in respect of services rendered by him or her in connection with the affairs of the board or a committee, be paid by the TEFAS
a. such travelling, subsistence and other allowances; and
b. in the case of the chairperson of the board, such additional remuneration, as the Minister with the concurrence of the Minister of Finance may determine.
CHAPTER 3
ADMINISTRATION OF LOANS AND BURSARIES
18. Any student or anyone who has been enlisted to begin their tertiary education at any tertiary education institution may, subject to the provisions of this Act, apply in writing to the TEFAS for a loan or a bursary on an application form determined by the board.
Conditions of loans and bursaries
19. (1) Loans or bursaries granted by the board may be subject to such conditions as it may determine, either generally or in respect of a particular loan or bursary.
a) Such conditions mentioned in subsection (1) above should take into consideration the need to make tertiary education accessible to all through financial aid.
(2) A loan or bursary is granted in respect of a particular course of study being undertaken or to be undertaken, which must be specified in the loan or bursary agreement in question, and may not be used for any other purpose.
(3) A written agreement must be entered into between the TEFAS and every borrower and bursar.
(4) The board may impose a condition in respect of any loan or bursary to the effect that if the borrower or bursar defers, or discontinues with his or her studies for any reason; the board may terminate the granting of finance in terms of the agreement and demand that any obligation which applies to the borrower or bursar as a result of the granting of the loan or bursary be complied with on or with effect from the date specified by the board.
(5) The amount of the loan or bursary to be used for tuition fees is paid by the TEFAS to the tertiary education institution concerned by way of allocations in respect of amounts payable to the institution by the borrower or bursar. The remaining amount necessary for other expenses such as rentals will be payable directly into the student’s account.
(6) The TEFAS may agree with any particular higher and tertiary education institution to administer loan and bursary applications for the purposes of easy access.
CHAPTER 4
RECOVERY OF LOANS
Repayment of loans
20. (1) A loan must be repaid as provided in the loan agreement.
(2) Notwithstanding anything to the contrary contained in a loan agreement, a borrower may repay a loan wholly or in part before the due date. Repayment of the loan extends to a minimum period of up to 2 years after graduation of the said applicant.
(3) If a borrower fails to make repayments as provided in this Act, his or her name may be placed on any list of defaulting debtors published by any person or body whose business it is to compile and publish such lists.
(4) The name of a borrower may not be placed on a list contemplated in subsection (3) unless he or she-
a. has been notified by registered letter addressed to his or her chosen domicilium citandi et executandi, of the failure to make repayments and of the intention to act in terms of subsection (3); and
b. has been afforded a reasonable opportunity to pay the arrear amount and has failed to do so.
(5) A borrower whose name has been placed on a list contemplated in subsection (3) has the right to approach a court of law if he or she is of the opinion that reasonable grounds exist for the removal of his or her name from the list.
Obligations of borrower
21. (1) A borrower must for as long as he or she is indebted to the TEFAS-
a. at such intervals as may be fixed by the board, furnish the board-
i. with his or her postal and residential addresses, as well as his or her chosen domicilium citandi et executandi;
ii. with information regarding his or her employment status;
iii. if he or she is employed, with the name and address of the employer; and
iv. with any other relevant information required by the board; and
b. immediately notify the board of-
i. any change of address and furnish the new address;
ii. any change in his or her employment status; and
iii. any change of employer and furnish the name and address of the new employer.
(2) Any failure by a borrower to comply with the obligations referred to in subsection (1) will, if the board so decides, have the effect to render the loan immediately repayable.
Obligations of employer
22. (1) The board may by written notice sent by registered mail inform the employer of a borrower that the borrower is indebted to the TEFAS in consequence of a loan which was granted by the TEFAS to the borrower and of the deductions that the employer has to make from the remuneration of the borrower.
(2) Any employer who is given notice in terms of subsection (1) is obliged to make deductions from the remuneration payable by him or her to the borrower according to the scales prescribed by regulation.
(3) Any amount deducted by an employer in terms of subsection (2) must be paid over to the TEFAS, and any amount so paid over must be a proportionate discharge of the loan by the borrower concerned.
(4) Any amount deducted in terms of this section must for the purposes of the applicable law, be regarded as forming part of the remuneration of the borrower.
(5) Any employer who fails to make a deduction in accordance with the provisions of this section is liable to pay to the TEFAS the amount which the employer failed to deduct, and such liability of the employer may be enforced by the NSFAS in any manner which may be available to the NSFAS at law.
Obligations of the government
23. For the purposes of ensuring that loans granted by TEFAS are paid by every borrower at the appropriate time, the government has an obligation to ensure that as much graduates churned out are employed either in private or public sector.
CHAPTER 5
GENERAL
Information to be provided to TEFAS
24. Every national and provincial department of state, every publicly funded science, research and professional council, every higher education institution and any other person or body who grants loans or bursaries to students must provide the TEFAS with such information as the TEFAS may reasonably require for the performance of its functions in terms of this Act.
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