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Nsfas R2.5m head office delays prolong terminating lease
Nsfas R2.5m head office delays prolong terminating lease

The Citizen

time03-06-2025

  • Business
  • The Citizen

Nsfas R2.5m head office delays prolong terminating lease

The current Nsfas leadership has distanced itself from the controversial agreement The National Student Financial Aid Scheme (Nsfas) continues to pay R2.5 million monthly for its headquarters, as legal delays prolong the termination of an alleged irregular lease agreement. The student funding agency recently disclosed that judicial scheduling constraints have pushed back the critical court application to set aside the contentious lease beyond the initially planned April 30 deadline, prolonging the financial burden on the cash-strapped organisation. Nsfas legal battle continues with SIU support The scheme is working with the Special Investigating Unit (SIU) to pursue a lease cancellation in court. 'Nsfas has engaged extensively and is cooperating fully with the Special Investigating Unit regarding the lease termination process,' the organisation said. The student aid scheme emphasised its alignment with the SIU's legal strategy, declaring that it 'would comply with any court decision on the matter' while working as a co-applicant in the unit's application to void the lease. ALSO READ: Nsfas recovers over R850 million following SIU probe Parking spots costing millions Beyond the substantial monthly rental payments, Nsfas acknowledged additional concerns surrounding parking facilities at the headquarters, which carry a five-year price tag of R18.6 million. The agency defended the current payments as unavoidable contractual commitments established when the lease was originally executed. 'Nsfas confirmed that it pays a monthly rental of R2.5 million, in accordance with the existing lease agreement with the landlord,' officials stated, noting that 'this amount reflects contractual obligations negotiated at the time of signing.' ALSO READ: Higher education minister withdraws appointment of Seta board chairpersons Nsfas board distances itself from previous decisions The current Nsfas leadership has distanced itself from the controversial agreement, emphasising that the lease arrangement preceded the board's appointment. Despite this, board members acknowledged their duty to address inherited problems. 'While this lease predates the appointment of the current Nsfas Board, the Board remains committed to its core mandate of implementing a comprehensive turnaround strategy founded on transparency, accountability, and fiscal responsibility.' Reform strategy underway The agency outlined extensive measures being implemented to prevent similar situations in the future. As part of this strategy, the scheme vowed to uphold a zero-tolerance policy towards wastage, fraud, and corruption. Nsfas added that 'any irregular contracts will be terminated in strict adherence to established due process.' ALSO READ: SIU launches probe into National Skills Fund Contingency planning for relocation Anticipating an eventual successful lease termination, Nsfas revealed it has begun developing backup plans to ensure seamless operations during any potential headquarters transition. The preparations form part of a broader organisational restructuring initiative. The scheme explained that contingency arrangements 'aim to minimise operational and staff disruptions' while the organisation collaborates 'with relevant stakeholders to finalise arrangements.' The relocation planning aligns with Nsfas' wider regionalisation objectives, designed to enhance both operational effectiveness and service delivery to students across the country. Broader legal action against irregular contracts The headquarters lease represents just one component of Nsfas' extensive legal campaign to address questionable agreements inherited from previous administrations. According to a May 7 presentation to parliament's higher education portfolio committee, the agency is pursuing multiple contract cancellations in court. The organisation confirmed it has begun implementing recommendations from both the Auditor-General and the SIU as core elements of its institutional transformation Programme. These reforms encompass technology system improvements, enhanced contract oversight, and strengthened internal governance mechanisms. ALSO READ: No party favourites: Minister defends appointment of Mantashe's son to Seta board Future vision despite current challenges Despite ongoing financial and legal complications, Nsfas leadership maintained its commitment to the organisation's fundamental mission of supporting disadvantaged students' educational aspirations. 'Nsfas envisions a future where every eligible student, regardless of background, has equitable access to transformative education,' officials stated in their recent parliamentary report. The agency asked for patience as it navigates the complex legal and administrative processes required to resolve inherited irregularities. 'Nsfas remains committed to transparency, good governance, and responsible management as we undertake these critical reforms. We thank the public and all stakeholders for their continued support and understanding,' the organisation declared. READ NEXT: Higher Education and Nsfas vow action amid Durban student protests

Higher Education and Nsfas vow action amid Durban student protests
Higher Education and Nsfas vow action amid Durban student protests

The Citizen

time23-05-2025

  • Politics
  • The Citizen

Higher Education and Nsfas vow action amid Durban student protests

KwaZulu-Natal students demand urgent action from Nsfas and DHET as unpaid fees and delayed registrations disrupt academic progress. Amid student marches in Durban, KwaZulu-Natal (KZN), over delayed payments by the National Student Financial Aid Scheme (Nsfas), the Department of Higher Education and Training (DHET) and Nsfas say they are actively working together to resolve ongoing funding challenges. Since the beginning of the academic year, university students have faced numerous funding challenges, including application discrepancies, late registration confirmation and appeals, and budget constraints. Students from different higher education institutions in KZN marched on Friday over non-payments. Durban students march over Nsfas non-payment The students started gathering at King Dinuzulu Park in Durban to demand urgent intervention from the scheme and the department. 'Nsfas must pay all historical debt that is left unpaid by Nsfas. Close the closeout project cases for students to get their qualifications,' read a sign by the South African Students Congress-affiliated students. 'DHET must clear historical debt now' and 'Release the loan funding guidelines with immediate effect', read the signs from EFF Student Command (EFFSC)-affiliated students. ALSO READ: DUT denies claims of Nsfas registration portal closure Due to errors made during the application process, some university students who applied during the technical and vocational education and training (TVET) application cycle have had issues with their registration status. Late registration confirmation & appeals, and budget constraints The DHET and Nsfas said the registration statuses of some students were only confirmed after the official deadline, causing delays in their access to funding support. Due to a limited remaining budget, students whose appeals have been granted are also facing financial shortages. This is impacting their capacity to pay for registration and related costs. ALSO READ: Nsfas slams 'fake news' about registration portal closure In a joint statement on Friday, DHET and Nsfas said they are actively collaborating to address these challenges. 'Efforts include reviewing applications from students who applied during the TVET application cycle, providing funding for students whose registration was submitted late and exploring options to allocate additional resources to support students with approved appeals,' the institutions said. Institutions must assist students – DHET and Nsfas DHET and Nsfas also encourage higher education institutions to assist students in resolving outstanding issues promptly. 'We remain committed to ensuring that all eligible students have access to the funding necessary to continue their studies without undue disruption,' the DHET and Nsfas said. 'We appreciate the patience and understanding of students and stakeholders as we work diligently to resolve these issues swiftly.' ALSO READ: Nsfas recovers over R850 million following SIU probe

Thousands march against Nsfas in Durban after months of non-payment [VIDEO]
Thousands march against Nsfas in Durban after months of non-payment [VIDEO]

The Citizen

time23-05-2025

  • Business
  • The Citizen

Thousands march against Nsfas in Durban after months of non-payment [VIDEO]

One company said it is owed more than R17.5 million by Nsfas. Students in KwaZulu-Natal-based staged a protest on Friday demanding that the National Student Financial Aid Scheme (Nsfas) pay the money owed to landlords. Some of the students have not received funds from Nsfas for up to five months, meaning they are at risk of losing their accommodation, they can't afford food and their studies have not been paid for. Students and landlords march against Nsfas About 2 000 angry protesters gathered at King Dinuzulu Park and proceeded to Durban City Hall to hand over a memorandum of grievances. Some of the landlords also joined the protest. Philani Mncwabe, the executive director of MSR Consultants, a company that deals with student accommodation in KwaZulu-Natal, said several landlords decided to participate in the march because Nsfas owes them money. Watch: Students and landlords protest against Nsfas Mncwabe said his company alone is owed more than R17.5 million. 'We would like to express our deep concern regarding the ongoing non-payment of accommodation allowances by the Nsfas, which continues to affect over 700 Thekwini TVET College students residing in our properties. As of today, students have not received their housing allowances for more than five months, resulting in an accumulated debt exceeding R17.5 million owed to MSR Consultants alone. 'We are demanding urgent intervention from Nsfas and the Department of Higher Education and Training. This action is not only a reflection of the escalating crisis but a desperate call for accountability and a sustainable solution.' Reasons for Nsfas non-payment Mncwabe said that at the core of the non-payment issue is the systemic failure of technical and vocational education and training [TVET] institutions to submit timely and complete registration data, ongoing defunding of students without adequate explanation and Nsfas' internal inefficiencies in processing payments. He said, as a result of Nsfas' failure, hundreds of students are being left without stable accommodation and basic necessities and landlords are being forced to carry financial burdens that threaten the sustainability of private student housing. ALSO READ: Higher education minister apologises for late Nsfas payments, addresses appeals He said he had not yet evicted any students, as that would compromise their right to education and dignity. 'Instead, we are exhausting all democratic avenues — including this march — to raise our concerns and demand collective action. 'We also wish to highlight that the crisis extends beyond TVETs. We currently accommodate over 300 students across the University of KwaZulu-Natal (UKZN) and Durban University of Technology (DUT), many of whom have not received payment or have recently been defunded. Some students from the previous academic period remain unpaid, adding to the growing debt owed to us.' He added that the problem not only impacts landlords and students — it affects institutions themselves. The protesters' demands included: Parliament and the executive to urgently allocate an additional budget to Nsfas; The minister of higher education to engage the TVET sector with the same urgency she has shown toward universities; and Nsfas to establish a national student accommodation forum made up of representatives from landlords, institutions, student bodies, South African Local Government Association (Salga), Department of Higher Education and Training (DHET) and a national task team to oversee crisis response and long-term sector planning. Mncwabe said they were instructed to hand over the memorandum to the City Hall management, as Nsfas and the DHET representatives were not available to receive it. By the time of publication, Nsfas and the DHET had not responded to questions from The Citizen. NOW READ: Nsfas recovers over R850 million following SIU probe

DUT denies claims of Nsfas registration portal closure
DUT denies claims of Nsfas registration portal closure

The Citizen

time09-05-2025

  • Business
  • The Citizen

DUT denies claims of Nsfas registration portal closure

DUT said an internal communication was taken out of context. The Durban University of Technology (DUT) has strongly denied allegations that it is connected to social media reports that the 2025 registration portal has been closed due to budget constraints. This follows a public statement by Nsfas referencing DUT concerning these claims. Nsfas condemned messages shared online about the closure, labelling them as misleading and warning of the damage such misinformation could cause to students and the broader higher education sector. In response, DUT said it had not released any 'official institutional communication or media statement making claims about the financial standing of Nsfas'. Internal message misrepresented The university said that the information cited by Nsfas originated from an internal communication sent by its financial aid unit to 1 671 affected students on 5 May 2025. 'The intention was to provide those students with accurate and transparent information concerning the status of their May 2025 Nsfas allowance payments,' said the university. The institution stated that the internal message was subsequently shared on social media without authorisation or context, leading to public misinterpretation and confusion. ALSO READ: Soweto schools disrupted after student's tragic death Portal closed While the official deadline for institutions to submit registration data was 31 March, universities were encouraged to meet an earlier internal deadline of 14 March to ensure prompt processing and allowance payments. Nsfas expressed disappointment that some institutions, including Durban University of Technology (DUT), failed to meet the recommended deadline. But DUT said by Nsfas's 2 April 2025 deadline, it had uploaded 23 464 student registration templates. An additional 634 were submitted on 3 April, when the portal was still accessible. However, 'a further 1 037 templates could not be uploaded as the system was no longer accepting submissions after that date,' the university noted. DUT referenced a Financial Aid Practitioners of South Africa (FAPSA) meeting with Nsfas on 11 April, during which it said it was confirmed that the system's closure was tied to budget limitations. ALSO READ: Frustration mounts as higher education websites remain offline for days University reimbursed To avoid delaying student payments, DUT said it paid allowances from its budget, over R44 million, on 6 May 2025, after receiving the necessary internal approvals. 'Qualifying students could receive their allowances within the acceptable time frame of the 7th day of each month,' said the university. Nsfas reimbursed the amount later that evening. DUT said it was disappointed that Nsfas 'issued a public statement referencing DUT without first engaging directly with the university to seek clarification'. It said it is addressing the matter through the proper channels and remains committed to ensuring that all eligible students receive their financial aid. DUT submitted a memorandum to Nsfas on 25 April outlining the reasons for delays in registration uploads, which included late Nsfas appeal outcomes, delays from accredited accommodation providers, and unresolved duplicate registration flags. The university reiterated its support for Nsfas and said it remains open to 'constructive engagement to resolve any outstanding matters.' NOW READ: Nsfas slams 'fake news' about registration portal closure

Frustration mounts as higher education websites remain offline for days
Frustration mounts as higher education websites remain offline for days

The Citizen

time09-05-2025

  • Politics
  • The Citizen

Frustration mounts as higher education websites remain offline for days

Students have condemned the Department of Higher Education for failing to maintain critical websites. A screenshot of one of the Department of Higher Education and Training websites taken on 8 May 2025. Students and professionals in the higher education sector lambasted the government for failing to maintain its websites, which are vital for providing information. Yesterday, the people who spoke to The Citizen confirmed that the department of higher education and training's website has not been working for days. Department's website error Paris Mokoena, a leader of the students at the Ehlanzeni TVET College, said the dysfunctional websites belonging to the education authorities have been affecting students for a long time. Mokoena was reacting to the fact that the department's website, when clicked, showed an error message stating access was denied. 'As students, we have been complaining about the department's dysfunctional online services and nothing has been done to resolve the issues. Our college has two websites; the one does not operate at all, while the other one always has glitches,' said Mokoena. 'No space to have websites that are not working' 'The department's website and that of our college are important because, among other things, students use them to check the progress of their registrations and other related issues,' said Mokoena, who is also a regional leader of the DA Students' Organisation. 'There was a time in which students thought that they were registered according to the website, but when they arrived at the campus they were told that they were not accepted. ALSO READ: Higher education minister apologises for late Nsfas payments, addresses appeals 'In today's digital world, there is no space to have websites that are not working properly. As students, we were supposed to do everything online, but many do tasks manually after realising that government does not care about the online glitches on their online platforms,' Mokoena said. Department 'not aware' A department employee, who asked not to be named because he was not authorised to talk to the media, said the system was functioning well and he was not aware it was not working. He said many employees were not aware of the alleged technical online glitches. 'This time around I was not aware of the website failure, but what I know is that many people have been complaining about the problems they come across when using our online services.' Both websites inaccessible The department has two sites – and – but both were not accessible. The websites serve as a central hub for information about post-school education, training, and skills development in the country. It also provides details on policies, initiatives, and resources related to universities, TVET colleges and Sector Education and Training Authorities. The department did not respond to the questions sent to them. NOW READ: 'Students lack the tools to succeed': Here's the latest number of graduates from SA's universities

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