NSFAS Tender Reveals Serious Shortfalls Sparking Concerns For 2024. Student accommodation tenders within the National Student Financial Aid Scheme (NSFAS) have been examined by the Organisation Undoing Tax Abuse (Outa). In 2024, NSFAS-funded students are expected to face an accommodation crisis. The findings are alarming and pose significant concerns.
NSFAS Daunting Accommodation Requirement for 2024
According to NSFAS, 397,000 beds are needed for students in 2024. However, only 6.5% (25,803 beds) have been accredited, raising serious concerns that the number will not be met.
Outa Apprehension and Forecasts for 2024
Rudie Heyneke, Outa investigations manager, expressed deep apprehension that it is unlikely the necessary beds will be accredited by January 2024, the start of the academic year. As a result of this grim situation, thousands of students may be without proper accommodations at the start of the academic year.
Previous Crisis and NSFAS Interventions
As a result of NSFAS capping student accommodation at R45,000 each, a similar crisis unfolded in the 2023 academic year, leading to widespread student protests. A reduction in accommodation allowances and mandatory registration on the NSFAS student accommodation portal were among the measures NSFAS introduced for private accommodation providers and institutions in response.
Outa Critique of NSFAS’s Role
Outa accused NSFAS of appointing inexperienced and understaffed service providers to inspect and accredit student accommodations, leading to the current accommodation crisis. From debt collectors to individuals facing corruption charges, many appointed service providers failed to meet NSFAS’ own requirements.
Financial Implications and Outa Recommendations
The decision to cap accommodation allowances at R45,000 further exacerbated the crisis, making it financially unviable for developers to rent accommodations to NSFAS students. Outa report, set to be submitted to relevant authorities, emphasizes the need for urgent action to prevent a recurrence of the chaos witnessed in 2023.
Investigations Triggered by Budgetary Concerns
Outa shared its report with the Special Investigative Unit (SIU) and the Auditor-General after irregularities were discovered in the tender evaluation process. NSFAS funding will be reduced in 2024 and 2025 due to budget cuts, announced in the Medium-Term Budget Policy Statement (MTBPS).
Conclusion
Outa urged swift collaboration between the minister, NSFAS board, universities, TVET colleges, and accommodation providers to find a solution before the 2024 academic year commences. The report serves as a call to action to prevent a recurrence of the challenges faced in 2023 and ensure adequate support for students in need.
