{
  "id": 9631417,
  "title": "STUDENT FUNDING: MPs slam NSFAS over R616m middleman payouts for accommodation system",
  "url": "https://urgent.news/2026/09/24/student-funding-mps-slam-nsfas-over-r616m-middleman-payouts-for",
  "topic": "world",
  "section": "World",
  "published": "2026-09-24T21:38:40.000Z",
  "source": {
    "name": "Daily Maverick",
    "slug": "daily-maverick",
    "url": "https://www.dailymaverick.co.za/article/2026-09-24-mps-slam-nsfas-over-r616m-middleman-payouts-for-accommodation-system/"
  },
  "original_language": "en",
  "account": "Members of Parliament (MPs) have expressed outrage over NSFAS, the government body responsible for student financial aid, over the payout of R616 million to four external service providers for their accommodation system. The four companies—Xiquel Group, New Dawn Technologies, Training Young Minds, and Profecia IT—were chosen through a competitive bidding process in 2023 to run the NSFAS accommodation portal. The contracts were established under the previous NSFAS CEO and board chairperson, both of whom were later removed due to corruption allegations.\n\nDuring a questioning session before the Portfolio Committee on Higher Education, representatives from the four companies faced intense scrutiny from MPs regarding the ballooning costs of the software platforms. The contracts, with a total estimated value of less than R50 million, ended up costing the state R616 million over two years. The service fee model imposed a 5% monthly deduction from accommodation providers' revenues, with the proceeds split 80/20 between the service providers and NSFAS. The SLA also included a one-time accreditation fee of R100 to R200 per bed.\n\nMPs questioned the discrepancy between the estimated costs and the actual payouts. NDT's executive Seleke Masemola claimed a setup cost of R46 million, while TYM's CEO Nthabiseng Mosena and Xiquel Group's CEO Kgopotso Riba stated R9.4 million and R8.2 million, respectively. Profecia IT had yet to finalize its figures.\n\nThe controversy deepened when it was revealed that TYM was initially disqualified but later reinstated, and that third-party agents had certified inflated bed numbers, allowing landlords to claim for \"ghost students.\" An internal legal review and previous warnings by the Organisation Undoing Tax Abuse exposed irregularities in the procurement process.\n\nThe committee chairperson, Tebogo Letsie, expressed skepticism about the legitimacy of the system, questioning why NSFAS would opt for four separate accommodation systems instead of one. He emphasized the disproportionate impact of these systemic problems on the poorest students. The acting CEO of NSFAS, Waseem Carrim, affirmed that an independent review had identified serious procurement flaws but cautioned against an immediate termination of the contracts, as it could disrupt the services students depend on.",
  "summary": "MPs questioned how an NSFAS accommodation system initially estimated at below R50m led to R616m in payouts.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}