Higher Education Minister Buti Manamela faces questions from EFF MP Sihle Lonzi over NSFAS accommodation payment companies, with concerns that the arrangement could cost the public purse more than R220 million annually.
EFF Member of Parliament Sihle Lonzi has raised concerns that NSFAS may still be using private companies to manage student accommodation payments despite assurances that the function was brought in-house at the start of 2026, warning that continued fees could cost the public purse more than R220 million a year.
Lonzi said information presented during an oversight visit to the National Student Financial Aid Scheme (NSFAS) offices indicated that four accommodation “solution partner” companies continued to perform student accommodation functions on behalf of the scheme.
He said this was concerning because NSFAS and the Department of Higher Education had publicly announced that the accommodation payment function had been brought in-house, creating the impression that the previous system had come to an end.
“The financial implications are enormous,” Lonzi said.
