The Organisation Undoing Tax Abuse (Outa) has concluded its investigation into student accommodation tenders at the National Student Financial Aid Scheme (NSFAS), revealing alarming findings that raise serious concerns for the accommodation crisis facing NSFAS-funded students in 2024.
NSFAS had previously announced a requirement for 397,000 beds for students in 2024.
However, by October 4, only 6.5% (25,803 beds) had been accredited out of the needed total.
Rudie Heyneke, investigations manager of Outa, expressed deep apprehension, saying it was highly unlikely that there would be enough beds accredited by the time universities and TVET colleges start in January 2024.
“This means that thousands of students will kick off the year without accommodation, yet again,” he said.
The 2023 academic year witnessed a similar crisis that led to widespread student protests due to NSFAS capping student accommodation at R45,000 per student per year.
This forced numerous students into makeshift accommodations and public spaces, facing hunger and disruption to their studies.
In response to the crisis, NSFAS introduced new measures for private accommodation providers and institutions, including a reduction in accommodation allowances by R15,000. It further required mandatory registration by students on the NSFAS student accommodation portal, adding a further cost to the students, ranging from R100 to R200 per bed.
The accommodation must meet minimum standards set by the Department of Higher Education, further complicating the process.
Outa attributed the current accommodation crisis directly to NSFAS, accusing the institution of appointing inexperienced and understaffed service providers for inspecting and accrediting student accommodation.
The investigation revealed that many of the appointed service providers did not meet NSFAS's own requirements, ranging from debt collectors to individuals facing corruption charges.
Heyneke emphasised that the crisis was exacerbated by the decision to cap accommodation allowances at R45,000, making it financially unviable for developers to rent out their accommodations to NSFAS students.
The Outa report, to be submitted to the relevant authorities, highlighted the need for urgent action to prevent a repeat of the chaos seen in 2023.
The Werksmans investigation into NSFAS's former CEO, Andile Nongogo, revealed irregularities in the evaluation of tenders, prompting Outa to share its report with the Special Investigating Unit (SIU) and the Auditor-General for further investigation.
In light of budget cuts announced during the Medium-Term Budget Policy Statement (MTBPS), NSFAS reported reduced funding for 2024 and 2025, raising concerns about the financial support available to students in need.
Outa urged swift collaboration between the minister, NSFAS board, universities, TVET colleges, and accommodation providers to find a solution before the 2024 academic year begins.
"Our country can ill-afford more chaos, and poor students don’t deserve to be treated like they don’t matter,“ Heyneke concluded.