The National Student Financial Aid Scheme (NSFAS) Administrator, Freeman Nomvalo says some private accommodation providers have still not been paid. This is despite processing bulk catch-up payments over the past two months amounting to more than R1 Billion at the end of July 2024
To resolve these issues, NSFAS has launched countrywide Student Accommodation Roadshows, which commenced in KwaZulu-Natal on 7 August 2024.
These roadshows seek to ensure NSFAS can directly engage affected landlords who cannot travel to the bursary schemes’ offices in Cape Town.
Nomvalo will lead these engagements, accompanied by key NSFAS personnel and representatives from universities and TVET College sectors, to address the challenges currently being faced by students and landlords.
Addressing Procurement Irregularities
Nomvalo will also seek to address concerns surrounding procurement irregularities in the student accommodation sector. In late 2021, NSFAS initiated bids for an online solution to streamline the application and management process for student residences.
This initiative led to the issuance of two tenders:
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SCMN023/2021: Provision of an online student accommodation solution, with four bidders appointed.
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SCMN003/2022: Panel of service providers to accredit student accommodation for five years, with thirty-nine bidders appointed.
Despite the intended benefits of the launch of these solutions, Nomvalo expressed serious reservations about the value derived from these services. Allegations of procurement process violations, questionable profit-sharing models, and security risks have prompted a review of all related contracts to ensure compliance with legislation and better service delivery to students.
NSFAS says they are committed to investigating these procurement irregularities and take corrective actions if necessary.
