The current NSFAS headquarters, which costs approximately R2.5 million per month in rent and R18.6 million over five years for 140 parking bays, will be shut down. Contracts with the landlord are set to be terminated following concerns over excessive costs. The Special Investigating Unit (SIU) has approached the courts to have the lease cancelled, with NSFAS joining the application.
This move is part of a broader strategy to establish a national footprint. In 2024, NSFAS Acting Chairperson Prof. Lourens Van Staden announced that regional offices could be opened in the Eastern Cape, Gauteng, and KwaZulu-Natal to ensure presence in all provinces.
OUTA Recommends On-Campus NSFAS Staff
The Organisation Undoing Tax Abuse (OUTA) welcomed the closure but urged a shift in decentralisation strategy. Instead of setting up regional offices, OUTA proposes placing NSFAS personnel directly at universities and TVET colleges.
“I think that NASFAS can accommodate one [or] at least two employees or personnel at each of these institutions so that they are there for the students, they can serve the students better and that will also lead to a smaller and more affordable head office,” said OUTA project manager Rudie Heyneke.
He called on the newly appointed CEO and Board to prioritise cost-cutting and redirect funds to support students more effectively. In 2025, a new leadership team took over at NSFAS.
OUTA also criticised the previous administration for introducing a controversial direct payment system involving fintech intermediaries and being linked to alleged corruption scandals.
Heyneke expressed confidence that all individuals implicated in wrongdoing would be held accountable.
