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The National Student Financial Aid Scheme (NSFAS) has acknowledged irregularities in its student accommodation system, confirming that four service providers were awarded contracts through a competitive bid process, but are now under scrutiny following allegations of irregular payments and possible mismanagement.
In a formal response to EFF MP Hon. Sihle Lonzi, NSFAS Acting CEO Waseem Carrim outlined the entity’s position regarding the controversial contracts. The letter, dated 30 June 2025, details concerns about fraudulent claims for “ghost students,” overcrowding, delayed payments, and violations of minimum accommodation standards.
NSFAS stated that the contracts in question were awarded on 25 August 2022 to:
- Training Young Minds (Pty) Ltd
- Profecia IT (Pty) Ltd
- Xiquel Group (Pty) Ltd
- New Dawn Technologies (Pty) Ltd
These service providers were tasked with managing an online student accommodation platform for NSFAS-funded students nationwide. NSFAS explained that the procurement followed a four-phase evaluation process and concluded with five-year service level agreements signed in February 2023.
Carrim revealed that the providers had subcontracted Netcash (Pty) Ltd, a registered financial services provider, to handle payments to accommodation providers. However, all agreements were signed before NSFAS was placed under administration in April 2024.
“The investigation is extremely voluminous and complex,” said Carrim. He confirmed that NSFAS is now conducting a full internal review of the student accommodation function and procurement processes. This includes evaluating remedial actions and collaborating with stakeholders to prevent further irregularities.
The financial aid body reaffirmed its commitment to ensuring that deserving students receive access to safe, affordable accommodation conducive to academic success.
