Higher Education Minister Nobuhle Nkabane said work is underway to move the National Student Financial Aid Scheme (NSFAS) out of its headquarters in Cape Town and set up regional offices in provinces.
“The NSFAS legal services unit is in the process of finalising a thorough review of the current lease agreement for the Cape Town offices.
“The review aims to assess options, including the possibility of reducing the number of floors being rented or alternatively initiating a full termination of the lease,” Nkabane said.
She was responding to parliamentary questions from DA MP Letta Mathlodi Maseko, who enquired about details of the termination of the current lease agreement for NSFAS offices.
Last month, Nkabane told the standing committee on public accounts that NSFAS was paying R2.5 million per month for office rentals in Cape Town.
Apparently, the higher education portfolio committee has previously raised its objections to NSFAS occupying the office space in Cape Town at such a high monthly cost.
The Minister had told the MPs that she instructed NSFAS administrator Freeman Nomvalo and Higher Education Director-general Nkosinathi Sishi to sit down and see how best to regionalise the offices of the bursary fund.
“We are in the process of moving out of those offices. We have an office that we own as the department here in Cape Town, which is going to be our regional office as we move forward,” she said at the time.
Maseko asked Nkabane where the new offices will be and how long it will take NSFAS to move the offices.
Nkabane said in her response that NSFAS intended to launch additional offices in KwaZulu-Natal, Eastern Cape and Gauteng.
“NSFAS intends launching the regional offices at the beginning of the 2025 academic year. Specific details regarding the locations, associated costs and staff component of each office will be addressed as the roll out progresses.”
Nkabane also said NSFAS lawyers would advise on finalisation of their legal opinion in the review of the lease agreement whether the entity will pay penalties or incur additional costs for termination of the rental lease agreement.
“At this stage, we are unable to provide full details regarding any potential penalties or additional costs associated with the termination of the lease.”
Nkabane envisioned that the opening of regional offices would have a positive impact on NSFAS operations and students.
There will be reduced travel costs and improved public access to the bursary fund.
“The decentralisation of NSFAS services through regional offices will enhance operational efficiency by bringing services closer to the institutions and students they serve. This approach will streamline administrative processes and improve responsiveness,” she said.
Nkabane added that for the students, the shift will mean quicker access to support service, more localised assistance and reduction in delays that previously existed.
“The overall experience is anticipated to be more accessible and user-friendly, ensuring that students receive timely and efficient support,” she said.
Cape Times