 Responds to EFF MP on Irregular Payments to Student Accommodation Provider.){kind=link}
In todays latest NSFAS News – South Africa National Student Financial Aid Scheme (NSFAS) Responds to EFF MP on Irregular Payments to Student Accommodation Provider.
RE: IRREGULAR PAYMENTS TO FOUR (4) STUDENT ACCOMMODATION INTERMEDIARIES
Thank you for your letter dated 30 June 2025.
NSFAS is committed to ensuring that eligible students have access to safe and affordable accommodation that is conducive to enable their academic success. However, NSFAS acknowledges that there are failures in the current system, including overcrowding, fraudulent claims for ghost students, delays in payments and non-compliance with the minimum norms and standards for student accommodation. Since the appointment of the new board of directors, NSFAS has embarked on an internal review of the student accommodation function. We look forward to engaging with you and all relevant stakeholders, based on a newly developed draft proposal relating to the management of the student accommodation function, once our initial analysis is complete.
As regards the contractual arrangements between NSFAS and the online student accommodation platform service providers, NSFAS confirms the following:
NSFAS conducted a competitive bidding process for the procurement of service providers to provide NSFAS with an online student accommodation solution.
On 11 February 2022, NSFAS issued a request for proposal under bid no SCMN023/2021, “to procure the services of a suitable service provider for the supply, customisation, configuration, implementation, support, and maintenance of an online platform for the management of student accommodation for NSFAS funded students studying at institutions of higher learning across South Africa.”
Bids proposals were received from 20 bidders. Of these, 15 bidders satisfied the mandatory requirements (phase 1) and passed the functionality evaluation (phase 2). Of these, 7 bidders passed the presentation evaluations (phase 3).
Following the price and B-BBEE evaluation (phase 4), the bid was awarded to the following 4 bidders on 25 August 2022: Training Young Minds (Pty) Ltd, Profecia IT (Pty) Ltd, Xiquel Group (Pty) Ltd, and New Dawn Technologies (Pty) Ltd. NSFAS concluded service level agreements with the 4 successful bidders on 27 February 2023, for a period of 5 years commencing from the go live date of the online solution.The service providers subcontracted Netcash (Pty) Ltd, a third-party payment services provider, to process payments to accommodation providers, being the accommodation portion of funding allocated to a student lessee funded by NSFAS. NSFAS understands that Netcash is a financial services provider registered under FSP Number 44751.The agreements described above were concluded prior to NSFAS being placed under administration in April 2024.
Sincerely,
Waseem Carrim
Acting Chief Executive Officer
The Halyard, 4 Christian Barnard
Cape Town City Center, Cape Town, 8000
Private Bag X1, Plumstead, Cape Town, 7801
T: 0800 067 327
E: [email protected]
W: www.nsfas.org.za
NSFAS BOARD MEMBERS:
Dr Karen Stander (Chairperson) | Mr Waseem Carrim (Acting CEO) | Adv Lavan Gopau | Dr Mampiane Johanna Maphutha | Dr Marcia Sockiwa | Dr Muywena Maluleke | Dr Syvanda B Mingadi | Adv Richard Tuou Ramashia | Ms Clarinda Elizabeth Simpson | Ms Karabo Mohale | Ms Ndiieka Portia Loylane | Ms Prashika Mahesh | Ms Philiswe Sibiya