Latest news with #R850
The Citizen
13 hours ago
- 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
The South African
26-05-2025
- Business
- The South African
Financial relief may be coming for South African homeowners
There may be good news for South African homeowners this week. That's because some economists are expecting the South African Reserve Bank (SARB) to cut the repo rate when it meets on Thursday. The SARB cut rates thrice since July 2024. There is hope that this cycle will continue into 2025, and some experts say this could come as soon as this month. Reducing the repo rate would affect interest rates, and means South African homeowners will pay less on their bond instalments. With interest taking up a hefty part of bond payments, the savings could be significant. According to BusinessTech , the average property owner could end up saving several hundred rand in this rate-cutting cycle. Economists in favour of an interest rate cut, including those at the Bank of America, have a handful of arguments. Inflation is at 2.8%, well within the SARB's target, and the dollar exchange rate is under R18/$. Other central banks, including those in the United Kingdom, Europe and China, have cut rates since April. However, many economists in South Africa note that the SARB is traditionally cautious. With ongoing global uncertainty and volatility in the rand, the bank may delay cutting interest rates, and South African homeowners may have to wait for financial relief. The Monetary Policy Committee (MPC) of the SARB will make the decision. Whether they cut or maintain the interest rates, economists agree that the committee is unlikely to be united in their decision. So, even if rates don't come down this week, there may still be cuts in the coming months. The average price of a new home in South Africa is R1 661 519. In July 2024, the interest rate was 11.75%. It's currently at 11% after January's cut. BusinessTech calculates the following savings for South African homeowners between July 2024 and May 2025: A bond of R850 000 saved R438 in monthly repayments A bond of R1 661 519 (the average home price) saved R856 in monthly repayments saved R856 in monthly repayments A bond of R2 million saved R1030 in monthly repayments Further rate cuts will only enhance savings for homeowners. Let us know by leaving a comment below or send a WhatsApp to 060 011 0211. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
The Citizen
23-05-2025
- 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
IOL News
14-05-2025
- IOL News
Tembisa hospital arson suspect confesses, implicates head of security
Tembisa Hospital has been rocked by a series of devastating fires. A suspected arsonist has been apprehende. A man accused of setting two devastating fires at Tembisa Hospital has confessed to the crime and implicated the facility's head of security, raising serious concerns about a potential cover-up linked to a major corruption probe. The suspect, Thembinkosi Manqunyana, 48, appeared in the Tembisa Magistrate's Court on Monday, where he was formally charged with arson. His arrest marks a dramatic turn in the ongoing investigation into the April blazes that disrupted vital hospital services and endangered lives. Police spokesperson Lieutenant-Colonel Mavela Masondo confirmed that Manqunyana confessed to starting two fires at the hospital — one on April 19 in the Accident and Emergency Unit, and another four days later. The second fire caused widespread damage, leaving outpatients and chronic patients without essential care for days. According to a confidential police report handed to Gauteng Premier Panyaza Lesufi, Manqunyana provided a detailed statement outlining the planning, procurement of petrol, execution, and alleged payment arrangement behind the arson. Crucially, the suspect also claimed that the hospital's head of security was directly involved in the commission of the crime. 'He further explained his role and the roles of other participants whom he identified as accomplices,' said Masondo, noting that more arrests are expected as the investigation deepens. Premier Lesufi described the incident as a calculated attack on the public and praised the swift work by investigators.' Destroying critical public infrastructure is nothing short of treason, and we expect the perpetrators to face the full force of the law,' Lesufi said in an interview on Tuesday. He revealed that Manqunyana had initially attempted to present himself as a police informant to divert suspicion, but investigators had already identified him as a prime suspect. The motive behind the fires is believed to be linked to efforts to conceal documents related to irregular Personal Protective Equipment (PPE) procurement at the hospital — documents that were reportedly being sought by the Hawks as part of a broader corruption probe. Tembisa Hospital has been under scrutiny since the 2021 assassination of whistleblower Babita Deokaran, who flagged suspicious payments and contracts linked to the facility. Her warnings prompted the Special Investigating Unit (SIU) to begin probing over R850 million in questionable procurement deals. According to officials close to the investigation, some of the destroyed documents were believed to contain key evidence regarding these contracts. These included supplier invoices, tender approvals, and communication records that could potentially implicate senior officials.' This fire didn't just damage property — it may have been an attempt to erase a paper trail,' said a senior source in the Hawks who requested anonymity. 'The fact that the head of security is now implicated raises serious concerns about how deep the rot may go.'Gauteng police commissioner Lt-Gen Tommy Mthombeni had appointed a special team of seasoned detectives to investigate the arson attacks, which authorities feared could be acts of sabotage. Their efforts quickly led to Manqunyana's arrest, with investigators piecing together evidence that pointed to deliberate planning and internal assistance. Masondo said that, due to the sensitive nature of the case, further details could not yet be disclosed. As the Hawks and SIU continue their probe, pressure is mounting on the Gauteng Department of Health to account for the extent of corruption within Tembisa Hospital. Civil society organisations are also calling for the protection of potential whistleblowers who may now fear for their safety. The case is expected to resume next week, with authorities vowing that all those responsible will be brought to justice.
The Citizen
07-05-2025
- Business
- The Citizen
Nsfas recovers over R850 million following SIU probe
Nsfas also confirmed that the University of Johannesburg had repaid more than R3 million through the close-out reconciliation process. The National Student Financial Aid Scheme (Nsfas) has clawed back over R850 million following irregular payments made to public universities and Technical and Vocational Education and Training (TVET) colleges. According to a presentation to the portfolio committee on higher education by Nsfas on Wednesday, funds were recovered through the Special Investigating Unit (SIU). This followed years of procurement failures, poor financial controls, and non-compliance in the handling of student funding. 'Recoveries paid to date to NSFAS – R858 978 309.19,' stated Nsfas. This figure is part of a broader R2.06 billion identified for recovery by the SIU. The recovery process is aimed at institutions across the higher education sector. Of this, R477.6 million was paid back on 5 April 2024 and a further R381.3 million on 27 September 2024. Top institutions implicated Universities listed in the recovery process include the University of Fort Hare for R277.6 million, the University of Pretoria for R400 million, the University of the Witwatersrand for R450 million, and the University of the Free State for R438.1 million. The amounts reflect historical overpayments, duplicate claims, or funding allocated outside the rules of the scheme. Nsfas also confirmed that the University of Johannesburg had repaid R311.9 million through the close-out reconciliation process. ALSO READ: Higher education minister apologises for late Nsfas payments, addresses appeals 'The application by the SIU at the Special Tribunal will not be premised on contractual law but public law,' the presentation noted. Cleaning house The SIU's probe into Nsfas was authorised through Proclamation R.88 of 2022 and is ongoing. The agency is also pursuing legal action to set aside irregular contracts. This includes the controversial lease agreement for the Nsfas headquarters. Nsfas has joined the SIU's application as a co-applicant. Meanwhile, Nsfas says it has begun implementing 'all AGSA [Auditor-General South Africa] and SIU recommendations' as part of its turnaround strategy. These include improving information and communication technology systems, enforcing contract compliance, and strengthening internal controls. 'Nsfas envisions a future where every eligible student, regardless of background, has equitable access to transformative education,' the report stated. NOW READ: TVET students: Here is when your 2024 Nsfas allowances will be paid out
