The National Student Financial Aid Scheme (NSFAS) has spent approximately R1.6 billion on student accommodation. According to the report presented to the Portfolio Committee on higher education, R311 million was spent on TVET colleges and R1.297 billion on universities.
NSFAS provides comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and Technical and Vocational Education and Training (TVET) colleges. This includes money for tuition and registration fees as well as several allowances for food, accommodation and learning materials.
The accommodation allowance is critical as it allows students to live close to the institution of learning. Without the accommodation allowance paid by NSFAS, many students would not be able to obtain their tertiary education qualification due to the feasibility of paying accommodation costs.
Why NSFAS Needs To Improve Student Accommodation Administration
While the payment of approximately R1.6 billion signals that the government bursary scheme is headed in the right direction, many students continue to face challenges due to unsuitable living conditions and unfavourable contracts with landlords.
The committee welcomed interventions NSFAS has undertaken to support students which includes setting up task teams for engagements around student accommodation with landlords being part of the process across the country to mitigate against possible risks of instability.
NSFAS Students Locked Out Of Accommodation
Addressing NSFAS Challenges
NSFAS is currently under administration. Freeman Nomvalo was appointed as NSFAS administrator in April 2024 by former Higher Education Minister Blade Nzimande following the dissolution of the NSFAS board.
Several other factors led to the appointment of administrator Nomvalo including the failure to pay NSFAS allowances to students, lack of institutional capacity and the board’s failure to implement the recommendation of the Werksmans Report.
Nomvalo told the committee that NSFAS does not possess credible student data and that it was vulnerable to cyber-attacks. The committee called on the government bursary scheme to strengthen its ICT systems as a matter of urgency to curb student data falling into the wrong hands.
NSFAS acknowledged the challenges it faces and assured the committee that it is taking steps to improve its operations. However, the committee remains sceptical and has vowed to continue monitoring the scheme closely.
Committee chairperson Tebogo Letsie called for a forensic investigation into the use of funds allocated for ICT improvements and threatened criminal charges if any irregularities were found.
Letsie added that the committee will continue to conduct oversight regarding NSFAS affairs until the scheme is running as intended.
We are going to conduct oversight over NSFAS until things turn around and going forward, the committee will need to be provided with a monthly report on what the scheme is doing with appeals, payment of student accommodation and allowances.
The committee also called for the Department of Higher Education to conduct a skills audit at NSFAS to identify unsuitable employees and urged the scheme to fill critical positions, such as Chief Financial Officer and Chief Internal Auditor, as a matter of urgency.
Newly-appointed Higher Education Minister Dr Nobuhle Nkabane has already made key decisions regarding the leadership at NSFAS. While Nomvalo was meant to spend two years overseeing the administration of NSFAS, his term will conclude either on 31 December 2024 or upon the appointment of a new NSFAS Board.
During this interim period, the Minister is tasked with appointing a new Board that reflects a diverse range of skills and expertise. Should the new Board be established before the end of the year, Nomvalo is set to play a crucial role in facilitating the transition.
NSFAS cannot claim not having enough money on its administrative budget to hire staff to solve the problems of students while at the same time renting a building at a cost of around R2 million a month.
