Public Protector to probe NSFAS and student housing after R5.1 billion funding scandal

Public Protector Kholeka Gcaleka is launching an investigation into student housing following findings of systemic maladministration within the National Student Financial Aid Scheme (NSFAS). The probe follows reports that more than 40,000 students across 76 higher education institutions improperly received approximately R5.1 billion in funding between 2018 and 2021.

Investigations by the Special Investigating Unit revealed that many recipients did not meet the income threshold of R350,000 per year, often because required financial documentation was never submitted. While over R2 billion has since been recovered, Gcaleka noted that administrative failures continue to impact students, including delays in allowances and tuition payments, which have led some institutions to withhold qualifications.

The Public Protector’s inquiry will also address risks of fraud and exploitation within the student housing sector. Previous reports have highlighted concerns regarding organized criminal elements operating within student accommodation spaces.