Latest news with #R44-million
Daily Maverick
6 days ago
- Business
- Daily Maverick
Landlords threaten legal action as NSFAS fails to pay R62m in student accommodation fees
The National Student Financial Aid Scheme (NSFAS) has left private accommodation providers in crisis after not paying R62-million in rent, which in some cases dates back to January 2024, causing landlords to default on municipal bills and delay staff salaries, increasing the risk of student evictions. The NSFAS has once again found itself in financial trouble with private accommodation providers after landlords claimed they are owed R62-million in unpaid accommodation fees dating back from January 2024. According to the landlords, this affects 2,797 beds across a wide range of universities and Technical and Vocational Education and Training colleges. Earlier this year, Daily Maverick reported that the Private Student Housing Association (PSHA), which represents developers, institutional owners, and operators managing more than 80,000 student beds nationwide, said members were owed R44-million in overdue rental fees; this has now increased to R62-million. PSHA CEO Kagisho Mamabolo told Daily Maverick that the delays in NSFAS accommodation payments stemmed from a combination of systemic inefficiencies, including unresolved validations, data mismatches and institutional delays in uploading accommodation confirmations. 'The impact has been financially devastating for many providers, particularly small and black-owned operators who lack access to working capital. Delayed payments have hindered maintenance, security, and student support services. Landlords are defaulting on municipal bills, mortgages or staff salaries. Several members have signalled possible closure, and new developments in the sector have been stalled or cancelled,' said Mamabolo. He added that on 28 July 2025, PSHA held a formal consultation and reconciliation meeting with a NSFAS team, led by the acting senior manager for student accommodation, Sivuyile Tshiwula. Mamabolo said NSFAS would begin a validation process of the arrears, and that they would give NSFAS until the end of the month to process the outstanding arrears. 'Should NSFAS fail to meet its obligation to validate and settle verified arrears within 30 calendar days, as committed in the 28 July 2025 consultation, PSHA will instruct legal counsel to initiate litigation proceedings and apply to attach NSFAS assets and bank accounts to recover the debts owed to our members. This action will be taken to protect the financial sustainability of housing providers and the continued accommodation of thousands of NSFAS-funded students across the country,' said Mamabolo. Lack of communication Daily Maverick spoke to the landlords who own Urban Circle, a private accommodation that houses students from the University of Johannesburg and the University of the Witwatersrand. Saul Mayers and Rowan Lewis said that the arrears owed from 2024 were approximately R14.2-million. One of their buildings, Drivelines, had a monthly rent of R745,000. 'In instances where University of Johannesburg and Wits distribute the money, we get paid. So in the instance where NSFAS has to distribute the money, we're getting no funds. I've got 134 students in a specific building who are University of Johannesburg NSFAS students. And University of Johannesburg cannot allocate the money for them; it has to come directly from NSFAS, and it's just not being paid,' said Lewis. Mayers added: 'Since there's a new board of directors at NSFAS, they have been sending emails and official communications confirming that 2024 arrears will be paid by a certain date, and now they have stopped sending notices, and we haven't received any of the 2024 arrears.' Mamabolo told Daily Maverick that no formal student evictions had been reported, but the risk was increasing. Without urgent intervention, student accommodation in some areas may become severely constrained. NSFAS's 5% commission system In May 2025, MPs grilled NSFAS over the use of four service providers who were meant to conduct the accreditation of properties whose owners had applied to the scheme's accommodation platform. The service providers received a 5% commission from landlords for every NSFAS transaction. Mamabolo said this reduced the net income received by landlords. NSFAS mandates property registration (names, locations, images) for student housing. It then accredits and grades properties. Frustration arises from intermediaries charging landlords 5% of NSFAS payments. 'This model has caused delays in payment processing, confusion over disbursement timelines, and reduced financial viability for providers already operating under capped rental limits. The Private Student Housing Association strongly opposes this model and continues to advocate for direct landlord payments, coupled with rigorous compliance monitoring,' said Mamabolo. Daily Maverick sent questions to NSFAS spokesperson Ishmael Mnisi and CEO Waseem Carrim on 31 July 2025, regarding the non-payment of landlords and the effect this would have on students. Daily Maverick followed up with the pair on 4 August.
Daily Maverick
08-07-2025
- Politics
- Daily Maverick
The troubled state of higher education under Nobuhle Nkabane's watch
Higher Education Minister Nkabane has been under scrutiny after controversial Setas appointments involving ANC comrades, raising questions of whether she is fit for the job. Other issues within the post-school education and training sector include inadequate NSFAS funds, accommodation woes and student debt. South Africa's higher education sector, serving more than 1.7 million students across universities, TVET colleges and CET institutions, promises quality learning, skills development and support. But each academic year opens with the same struggles – unpaid student debt, blocked registrations, and housing shortages that leave some students sleeping outside institutions. Protests have become routine, driven largely by delays and dysfunction at the National Student Financial Aid Scheme (NSFAS), with issues ranging from slow funding to technical failures and poor governance. It was for these reasons that Higher Education Minister Nobuhle Nkabane was brought in to steer the ship after the Government of National Unity (GNU) was formed, along with two deputies, Mimmy Gondwe and Buti Manamela. Nkabane arrived when entities such as NSFAS had been placed under administration over non-payment issues. Exploring the state of higher education and training under Nkabane: NSFAS, too broken to succeed Nkabane's first pledge was to resolve the NSFAS chaos and ensure that qualifying students received bursaries and loans. She increased university allowances by 4% while TVETs received a 46% increase. This was aimed at responding to the increased cost of living. A boost for students, helping them to buy food and other necessities. She appointed a NSFAS board of 18 members and a new acting CEO, Waseem Carrim. In 2025, NSFAS was able to fund approximately 811,011 students across various universities and TVET colleges, and offer housing to students as they worked with institutions and private landlords. However, many students experienced issues. Accommodation remains one of the biggest failures of the NSFAS; thousands of students are unaccommodated or threatened by landlords due to payment delays caused by NSFAS. In February, protests erupted at institutions such as CPUT and NMU, with students demanding urgent intervention over access to housing. Earlier this year, NSFAS admitted to owing R44-million to landlords from the Private Student Housing Association (PSHA), leaving thousands of students in limbo. Recently, students burnt the Northern Cape Urban Technical and Vocational Education and Training (TVET) College offices in Kimberley after NSFAS delayed allowances. NSFAS is still locked in a battle to exit its costly R2.5-million rent in Cape Town headquarters, a symbolic reminder of its financial disarray, while Minister Nkabane said this is being handled by lawyers. Operational cracks remain, and the recent improvements have failed to inspire confidence in the student community. MPs and students have called for NSFAS to be decentralised so that offices can be opened in universities and colleges. Looking at the abrupt calls to remove her as minister, little has been done at NSFAS to convince students that the minister has the situation in control. TVET challenges TVET colleges, often touted as a crucial solution to youth unemployment, received R14-billion in this year's budget – a slight increase from last year. But this funding boost masks more troubling realities. These institutions remain under-resourced, and quality assurance remains a recurring concern. While there have been pockets of progress, many TVETs continue to operate with outdated equipment, a lack of qualified lecturers, and poor infrastructure. Sihle Lonzi of the EFF was vocal on 3 July 2025, during the budget vote, that TVETs must not be treated as high schools; they must be promoted similarly to how universities are encouraged. To improve the TVET colleges, Nkabane signed a memorandum of understanding, aligning SA's TVET priorities with Austria's dual education model. The agreement will facilitate the exchange of vocational education delegations, foster partnerships between training institutions and companies, and enable the placement of South African students in Austrian businesses. Deputy Minister Gondwe has been conducting oversight visits in various colleges in SA. She led a campaign against bogus colleges. According to TimesLive, Gondwe said unregistered institutions of higher learning rob students of employment opportunities. This was a critical step in improving the higher education sector. Daily Maverick reported that students from Educor, a private education provider with several colleges including Damelin, CityVarsity, ICESA City Campus and Lyceum College, said they are struggling to get their certificates, while workers were forced to resign over unpaid salaries. Educor was fully reinstated after Blade Nzimande cancelled it in 2024. Non-issuing of certificates Another dark mark on higher education is the issue of student debt. Across the country, thousands of graduates are unable to collect their certificates due to unpaid fees, effectively locking them out of the job market. According to many, this isn't just a bureaucratic nuisance – it's a systemic barrier to employment in a country with a 32.9% unemployment rate. Worryingly, even those with degrees are not immune. The graduate unemployment rate is at 11.7%, according to 2025 first-quarter statistics. Daily Maverick reported that graduates from various institutions were in support of the Student Debt Relief Bill proposed by Lonzi. The bill aims to tackle the payment of university debts. Nkabane has not responded to this proposed bill. Safety on campus Another issue troubling in the sector is the safety of university campuses and TVET colleges. Multiple incidents of deaths and injuries have occurred since the start of the year, with the latest being the tragic death of a Walter Sisulu University (WSU) staff member, Sinethemba Mpambane. Sisonke Mbolekwa, a WSU student, was allegedly killed by residence manager Manelisi Mampane, after students protested against poor maintenance conditions. Nkabane confirmed that Mbolekwa was a WSU student, after she first denied that he was a student. Universities like Sefako Makgatho Health Science University in Gauteng are battling issues of lack of water, while they have no library. This was revealed during a portfolio committee meeting in Parliament. The university also 'acknowledged infrastructure limitations in some of its older residences – particularly in relation to the absence of stoves and laundry facilities', according to spokesperson Tshimangadzo Mphaphuli. Campus safety is a concern that needs attention. Nkabane has been part of programs to ensure that students are safe. She led a gender-based violence femicide programme in schools that educated on the importance of safety. State of Setas The Sector Education and Training Authorities (Setas) are responsible for facilitating skills development through programmes such as learnerships and internships. Consisting of 21 different Setas ranging from agriculture to safety and security, they also disburse grants to employers and skills development providers to offer training to employed and unemployed learners. Through Setas, SA has produced more than 95,000 qualified artisans over the past five years. However, Setas have been under scrutiny due to Nkabane wanting to appoint ANC politicians as chairpersons of the 21 different boards. In 2024, Minister Nobuhle Nkabane called for nominations to appoint chairpersons of accounting authorities for 21 Setas, set to serve from April 2025 to March 2030. Leaks revealed Buyambo Mantashe, Minister Gwede Mantashe's son, was appointed, despite claims that an independent panel led by Terry Motau made the picks. Motau denied chairing it, and most panellists were from her department, raising the question of whether the panel was independent. Further, members of the Portfolio Committee on Higher Education felt misled by Nkabane, with the Democratic Alliance opening a case against her. Student organisations also lost faith in Nkabane, calling for her removal as minister. As Nkabane continues to steer the higher education sector, the story of the higher education sector under her is one of missed opportunities and mounting crises. Despite bold promises and high budgets, it's a sector plagued by funding delays, unsafe campuses, uncollected certificates and political interference. DM
Daily Maverick
18-06-2025
- Business
- Daily Maverick
Nelson Mandela Bay seesaws on rates as council battles to pass 2025/26 budget
The Nelson Mandela Bay Council will, again, try to pass the budget on Wednesday and while smaller increases in tariffs for water and sanitation were promised by mayor Babalwa Lobishe last Thursday, it wasn't included in the draft budget. However, by 5pm on Tuesday, a circular indicating that there were conditions to the reduced water and sanitation rates arrived with councillors. The Nelson Mandela Bay metro's council will again try on Wednesday to approve the budget for the 2025/26 financial year. Last Thursday, during the council meeting, Mayor Babalwa Lobishe promised a 0.5% reduction in the proposed increases for water and sewage. But in the draft budget received by councillors on Tuesday, it looked like the increase was again set at 5.5% and not at the promised 5%. But last Thursday night, a circular was signed by Nosipho Xhego, the executive director of corporate services in the metro, stating that the proposed reduced increase can only be put into operation if councillors agreed to scrap the city's scarce skills allowance and also agree to an overtime policy based on regulated thresholds. The circular states that the municipality currently does not have an overtime policy, and also pays more than the regulated thresholds, and implementing these could save R22-million in the current financial year. Other increases remain unchanged, including an increase in property rates by 5%. The proposed increase in electricity prices stands at 12.8%, which is 0.6% higher than the Eskom price. The electricity department is running at a loss of more than a billion and is spending more money on buying electricity than what it makes selling it – because of theft and meter tampering. Allowing this increase, however, is not a decision that can be taken by council though, as it falls within the mandate of the National Energy Regulator. In 2022, the Nelson Mandela Bay Business Chamber successfully applied for an order from the Eastern Cape Division of the High Court in Gqeberha, indicating that Nersa must link price increases to a cost of supply and also was not allowed to pass on municipal inefficiencies to the consumer. Werner Senekal from the Democratic Alliance, the official opposition in the metro, said the budget's projections were off and it was based on a 76% collection rate while the average collection rate is 72%. He added that the Integrated Development Plan, setting out ward-based priorities and the budget, also was not in lockstep. By law, the budget must be passed by 1 July, otherwise the metro's council can be dissolved. In the latest circular sent on Tuesday afternoon, officials admitted that there must be better planning and also mechanisms in place to include ward councillors in decision-making around ward budgets. The money allocated to ward budgets in the revised budget, in comparison to last week, has increased by just over R44-million and, in comparison to the first draft budget in April, has increased by R452-million. Ward 1 and 2 in the metro, both in need of critical electrical infrastructure work, both received R4.8-million and R2-million more in their capital budgets. Ward 16, which includes a large section of the metro's manufacturing industry, received a R14-million boost in the new budget.
