OUTA report reveals corruption risks in NSFAS student accommodation system

THE Organisation Undoing Tax Abuse (OUTA) has released a report raising serious concerns about billions in public funds flowing through the National Student Financial Aid Scheme (NSFAS) student accommodation system.

- HOPE NTANZI

AN OUTA investigation has revealed governance failures and systems weakness in the NSFAS student accommodation model.

(AYANDA NDAMANE Independent Newspapers)

The two-year investigation exposes corruption risks, governance failures, and issues with accommodation standards that affect thousands of students across South Africa.

OUTA's report builds on findings from its December 2023 investigation and incorporates new evidence from the Promotion of Access to Information Act (PAIA) and whistleblower disclosures.

The report highlights that recent structural changes to the NSFAS student accommodation model have introduced multiple intermediaries into the funding pipeline, complicating the system and increasing the potential for inefficiencies and abuse.

"There were already accommodation placement systems operating successfully at many universities," said Stefanie Fick, OUTA's Executive Director of Accountability.

"Instead of building on those systems, NSFAS introduced a new portal and outsourced critical functions to external service providers and accreditation agents."

The investigation reveals significant weaknesses in the accreditation process, with some accreditation agents failing to properly inspect properties and certifying those that did not meet the required standards. In one case, a property listed as accommodating 200 beds was found to be a typical three-bedroom house.

"If agents are certifying properties without proper inspections, the reliability of the entire accommodation system must be questioned," said Rudie Heyneke, OUTA's Senior Project Manager.

OUTA also raised concerns about the procurement process for companies managing the accommodation portal.

The NSFAS board appointed four solution providers, despite the evaluation committee recommending only two.