Neelam Rahim | neelam@radioislam.co.za

3-minute read
24 January 2025 | 16:02 CAT

OUTA accuses NSFAS of monopolising student accommodation amid looming unrest.

The National Student Financial Aid Scheme (NASFAS) is once again at the center of controversy as students and landlords grapple with unpaid accommodation fees, prompting the Organisation Undoing Tax Abuse (OUTA) to call for urgent intervention from the Minister of Higher Education.

The crisis stems from NASFAS’s 2023 decision to centralize student accommodation through a dedicated portal and accreditation system. However, the rollout has been plagued with inefficiencies, leaving students without housing and landlords without rent payments. In an interview with Radio Islam International, OUTA’s Rudie Heyneke has condemned the situation, saying, “NASFAS has created a monopoly, forcing landlords to rely on an ineffective system. Many of these accreditation agents lack the expertise needed, leading to inconsistencies in the approval process.”

According to Heyneke, the accreditation process was flawed from the start. “Some of these accreditation companies were only registered after the tender was advertised, meaning they had no prior experience in assessing student housing. As a result, we have landlords receiving completely different ratings for similar properties, causing major confusion and financial losses.”

The financial strain on landlords has become dire, with reports indicating that NASFAS owes private accommodation providers over R44 million. This has resulted in some landlords threatening to withdraw student housing, which could leave thousands without a place to stay as the academic year begins.

Heyneke insists that the issue is not a lack of funding but mismanagement. “NASFAS recorded an accumulated surplus of R22 billion in 2022-23, so this is not a funding issue. It’s a case of poor administration and a failure to implement a properly tested system.”

OUTA has urged the Minister of Higher Education to restore the management of student accommodation to universities and TVET colleges. “Before NASFAS took over, institutions successfully managed their own student housing. They have the experience and the systems in place to handle this better than a failing centralized system,” said Heyneke.

With tensions rising and student protests looming, stakeholders hope the minister will step in before the situation worsens.

Listen to the full interview on The Daily Round Up with Moulana Junaid Kharsany and OUTA’s Rudie Heyneke here.