South African MPs criticize NSFAS over R616 million payouts — Daily Maverick
In South Africa, members of the parliamentary committee on higher education criticized the National Student Financial Aid Scheme (NSFAS) over payments to four external operators of the student accommodation portal. In 2024–2025, they received a total of R616 million. This was reported by Daily Maverick.
Representatives of Xiquel Group, New Dawn Technologies, Training Young Minds and Profecia IT answered questions from the parliamentary committee on September 23. They signed five-year contracts with NSFAS in 2023 following a competitive tender.
Costs exceeded the initial estimate
The tender documentation provided for the creation and operation of platforms at no upfront cost to NSFAS. The estimated value of the tender was stated at less than R50 million, while suppliers were expected to recover their costs through use of the system.
According to NSFAS, the four companies received more than R260 million in 2025 alone. Profecia IT received R86 million, Xiquel Group R110 million, New Dawn Technologies R51 million, and Training Young Minds R18 million.
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New Dawn Technologies head Seleke Masemola said the company’s launch costs amounted to R46 million. Training Young Minds CEO Ntobiseng Mosena cited R9.4 million, while Xiquel Group CEO Kgopotso Riba cited R8.2 million. Profecia IT said it was still finalizing its calculation of initial costs.
Concerns over procurement and call for an investigation
NSFAS acting CEO Wasim Carrim confirmed that an independent legal review by the ENS firm found serious shortcomings in procurement procedures. Earlier, the Organisation Undoing Tax Abuse alleged irregularities during the tender: according to its data, Training Young Minds was initially disqualified and later reinstated in the selection process. The organization also claimed that third-party agents confirmed inflated numbers of beds, allowing landlords to seek payments for so-called “ghost students.”
Carrim warned that early termination of the agreements without adequate internal systems could disrupt accommodation and payment processes for student beneficiaries. NSFAS said it changed its payment system in 2026. Committee members called on the Special Investigating Unit (SIU) to speed up its review of the scheme, while committee chair Tebogo Letsie plans to contact the unit regarding the progress of the investigation.
