The Organisation Undoing Tax Abuse (OUTA) has released a report raising concerns about corruption risks, governance failures, and the quality of student housing within the National Student Financial Aid Scheme (NSFAS) accommodation system. The investigation found that recent structural changes have significantly altered how billions of rand in public funds are managed within the student accommodation pipeline.
According to NSFAS, steps are being taken to improve accreditation, monitoring, and payment processes to ensure students have access to safe and affordable housing.
Speaking to VOC News, OUTA Senior Project Manager Rudie Heyneke said the investigation uncovered several troubling findings.
“I think the main findings were, first of all, that we believe the appointment of the solution providers—the people who manage the online student accommodation portal—was irregular,” he said.
Heyneke also raised concerns about the accreditation agents responsible for inspecting and grading student accommodation facilities.
“We also have doubts about the appointments of the accreditation agents who had to inspect student accommodation and grade them, particularly regarding their ability, experience, and qualifications,” he explained.
The report further highlights cases where substandard accommodation was allegedly graded as high-quality housing, raising concerns about student safety.
“We found substandard accommodations that were graded as top-tier, and that is really concerning when you consider the safety of students,” said Heyneke.
OUTA also questioned the cost of the system used to manage accommodation placements.
“For these solution providers, we found that they will be paid approximately a billion rand over the contract period for a system that already exists and is used by many institutions,” he added.
OUTA says greater oversight and transparency are needed to ensure public funds are used effectively and that students receive safe, quality accommodation.
Listen to the full interview below:
VOC News
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