Outa project manager Rudie Heyneke has strongly criticized Deputy Higher Education Minister Buti Manamela’s proposal to relocate National Student Financial Aid Scheme (NSFAS) employees from its Cape Town headquarters to provincial offices, arguing that the funds spent on exorbitant lease agreements should instead benefit students.
Costly Lease Agreement Under Scrutiny
The Special Investigating Unit (SIU) is pursuing a court application to cancel NSFAS’s R2.5 million per month lease agreement for office space in Cape Town’s CBD. The deal, signed in March 2022 under former CEO Andile Nongogo—who was later fired in October 2023—escalates at 6.5% annually, costing taxpayers R166.9 million over five years.
Heyneke highlighted the absurdity of the lease, which includes R2,431 per parking bay per month in one of Cape Town’s most expensive areas. “For a state institution, this is unnecessary and wasteful,” he said.
Push for Decentralization
While supporting Manamela’s decentralization plan, Heyneke urged NSFAS to go further by placing staff at universities and TVET colleges. “Having personnel at 26 universities and 50 TVET colleges would improve student support and reduce the need for a costly head office,” he said.
The acting NSFAS CEO has since backed the SIU’s legal bid to terminate the lease, signaling a shift under new leadership. Heyneke praised this move, noting that the new board appears committed to cutting wasteful expenditure and improving governance.
Demands for Accountability
Heyneke called for consequences for those responsible for the questionable contracts, including former NSFAS CEO Andile Nongogo and former CFO Ernest Khosa, both of whom face ongoing investigations. The SIU, which has a presidential proclamation to probe NSFAS, is expected to bring multiple contracts under review.
A Step Toward Transparency?
Heyneke expressed cautious optimism about reforms under the new NSFAS board, citing improved engagement with civil society. However, he stressed the need for systemic changes to prevent future mismanagement.
As the legal battle unfolds, students and taxpayers await answers—and hope that funds meant for education will no longer be diverted to lavish office spaces.
