Mr CM Ramaphosa
President of the Republic of South Africa
Private Bag X1000
Pretoria
0001
Dear Mr President
Concerns over NSFAS’s Student Accommodation Pilot Project as announced in late 2023
1. I refer to several letters I had written to you in the past about the alleged corruption, maladministration and dysfunction at the National Student Financial Aid Scheme (NSFAS) and the alleged involvement of the Minister of Higher Education, Science and Technology, Dr Blade Nzimande, in meddling in departmental processes and administration, as well as his actively side-lining and/or undermining of the senior departmental accounting officers.
2. On 8 December 2023 the NSFAS announced the names of twenty-two TVET Colleges and seventeen universities which signed up for the NSFAS Student Accommodation Pilot Project in 2024.
3. This pilot project has been launched amidst NSFAS being in the fits of management difficulties with the exit in late 2023 of its Chief Executive Officer, Mr Andile Nongogo, amidst allegations of corruption around the appointment of service providers. Not to mention the fact that embattled NSFAS board chairperson, Mr Ernest Khosa, has recently taken a leave of absence following allegations of corruption levelled against him by the Organisation Undoing Tax Abuse (Outa).
4. As matters stand, for quite some time now, NSFAS has not been coping with the load of managing the payments of students’ fees, and the centralised system is fraught with mismanagement and corruption. With this Student Accommodation Pilot Project, NSFAS has resolved to centralise another disbursement system.
5. On the one hand, some student accommodation landlords are questioning why a working system is being abandoned in favour of a system, of which everyone is rightfully sceptical about NSFAS’s capacity and ability to manage it. This whilst only new opportunities for corruption are being created, when NSFAS’s reputation is less than sterling where maladministration and corruption is concerned.
6. On the other hand, other student accommodation landlords are complaining that the current system results in late payments, thus having a knock-on effect on the economic feasibility of businesses down the chain.
7. There are clearly two schools of thought on the efficacy of NSFAS’s current student accommodation system, but given the troubles that NSFAS is experiencing with its management and the board, it is clear that this institution cannot make a sound, impartial decision where this student accommodation pilot project is concerned.
8. The United Democratic Movement believes that an independent panel must be appointed to adjudicate the divergent views of the student accommodation landlords, since NSFAS cannot be trusted to be the caretaker of this process, and given Minister Nzimande’s historically compromised position, that he should not be involved, as well as the NSFAS management and its board.
Yours sincerely
Mr Bantu Holomisa, MP
President of the United Democratic Movement
