NSFAS Student Accommodation System Under the Spotlight

The Organisation Undoing Tax Abuse (OUTA) has welcomed the Auditor-General of South Africa’s decision to conduct a national inspection of NSFAS-funded student accommodation, saying the process could help uncover whether students are being housed in accommodation that fails to meet required standards.

According to notices issued to accommodation providers, inspectors will assess compliance with Department of Higher Education and Training accommodation standards and review documentation, including approved building plans, electrical compliance certificates, fire safety compliance records, proof of ownership, and zoning approvals. The inspection findings will be submitted to the Auditor-General for review.

OUTA says the audit comes after the organisation called on several oversight bodies, including the Auditor-General, to conduct a comprehensive review of student accommodation funded through NSFAS.

“Our concern has never been limited to the condition of individual buildings. We have been concerned about whether the accreditation process itself is capable of identifying non-compliant accommodation before students are placed there and public funds are paid out,” says Rudie Heyneke, OUTA Senior Project Manager.

“An independent audit of this nature is exactly what is needed to establish whether accreditation decisions have been based on accurate information and whether accommodation providers are meeting the standards they claim to meet.”

In March 2026, OUTA released the findings of an investigation into student accommodation facilities. The investigation identified several concerns relating to safety, compliance, and information submitted during accreditation processes.

OUTA also raised concerns about the potential existence of incorrect information submitted to NSFAS, shortcomings in verification processes, and lease agreements that may require closer scrutiny.

One of the properties identified during OUTA’s investigation was a development in KwaZulu-Natal that appeared to have been occupied by students while construction activities were still underway.

“One of the reasons we called for a national audit is because our investigation identified properties that raised serious questions about compliance with basic requirements expected of student accommodation,” says Heyneke.

“In one instance, we identified a property that appeared to be occupied by students despite concerns around its development status, municipal approvals, and zoning. These are exactly the types of issues that an independent audit should be examining.”

OUTA stresses that the purpose of the audit should not simply be to identify non-compliant accommodation, but to determine how such accommodation may have been accredited and funded in the first place.

“If accommodation providers have supplied inaccurate information, if accreditation agents failed to identify problems, or if oversight processes were inadequate, those weaknesses need to be exposed and corrected,” says Heyneke.

“Students and their families trust that accommodation funded through NSFAS has already been properly vetted. The audit provides an opportunity to verify whether that trust has been justified.”

OUTA says the findings should be made public and used to strengthen oversight, accreditation, and verification processes across the student accommodation sector.

“The safety and well-being of students must always come first,” says Heyneke.

“For too long, the focus has been on the number of available beds. Equal attention must be paid to whether those beds are safe, compliant, and suitable for students. This audit provides an opportunity to establish the facts and ensure that public funds are supporting accommodation that meets the standards students deserve.”