The National Student Financial Aid Scheme (NSFAS) is advancing its plans to enhance accessibility for students by relocating its head office and setting up regional offices across South Africa.
This takes place as litigation is under way to cancel the lease agreement for its Cape Town office, aiming to save taxpayers an estimated R2.5 million in monthly rentals.
During a briefing to the Higher Education Portfolio Committee on Wednesday, Acting CEO Waseen Carrim revealed that NSFAS is determined to establish a national head office in Gauteng by the start of 2027, while simultaneously maintaining a regional presence in the Western Cape.
This initiative, initially proposed by former minister Nobuhle Nkabane two years ago, is seen as a strategic move to enhance NSFAS’s service delivery to the student community.
“Through consultation with our employees, approval of the board, and executive authority, we decided that we will establish national head offices in Gauteng at the start of 2027, while maintaining a regional office in the Western Cape,” Carrim stated.
The plan is to build capacity within these regional offices, particularly as they gear up for the registration period for the 2027 academic year.
In a positive development, NSFAS has received confirmation from 56 institutions that are willing to provide free office accommodation to facilitate the establishment of these regional offices.
Carrim mentioned that NSFAS is in the process of drafting Service Level Agreements with these institutions.
NSFAS is also engaging with unions, including Nehawu and NUPSAW, to address the recruitment, relocation, and movement of employees important for the scheme’s ongoing operations.
“We don’t intend to implement this project without due and appropriate consultation. Our employees are the most important aspect of our organisation. We want them to come on board with us in this process,” Carrim said.
The total cost of decentralisation is projected to be R103 million.
“However, this project will give savings of about R70.2m as a result of reduced office space, reduced travel costs, and reduced utilities,” he said.
Carrim updated MPs on ongoing legal matters, including a court case initiated by the Special Investigating Unit (SIU) concerning irregularities identified in the Cape Town lease agreement.
There have been two pre-trial hearings with the presiding judge on the matter, and NSFAS has filed its answering affidavit.
The SIU’s investigation is broadening to include private accommodation providers contracted by NSFAS to ensure compliance and integrity in student accommodation arrangements.
“They will do analysis data related to Solution Partners, review the Service Level Agreement, and interrogate the database, and support the audit of student accommodation.
“Where we find grades were incorrectly granted, these grades will be terminated and funds recovered from the accommodation providers that unduly benefitted from incorrect grading that has taken place,” he added.
Earlier, Carrim said Edward Nathan Sonnenbergs (ENS) Incorporated’s legal review on student accommodation identified irregularities in the procurement process, which led to the appointment of the service providers.
“However, at the time the advice was provided, NSFAS lacked the internal systems and personnel capacity to assume the service providers’ functions, disburse the allowances directly to accommodation providers, or plan to ensure continued service delivery to interested parties.
“In these circumstances, ENS advised NSFAS to develop the required internal capacity before prematurely terminating or suspending the service level agreements between NSFAS and each of the service providers. This approach would avoid disruptions to student accommodation and payments to accommodation providers, which could adversely affect students’ learning.”
Meanwhile, NSFAS has disbursed R7.8 billion to universities and TVET colleges for the tuition, allowances, and accommodation of students to date.
A total of 697,224 were approved for funding, and 147,994 applications were rejected this year.
There were 2,321 applications that were awaiting verification after outstanding documents were re-submitted, and 10,336 still have outstanding documents.
MPs heard that a total of 102,689 appeals for funding applications were received.
Only 23,056 were approved, 21,095 rejected, and 48,363 closed, finalised, or withdrawn.
There were 6,591 appeals with outstanding documents, and 3,584 have been resubmitted for reconsideration.
Carrim said they plan to conclude the appeals by the end of the March.
“Majority emanate from continuing students who had not met the academic progression criteria,” he added.
Mayibongwe Maqhina
iol.co.za
