ANCYL urges NPA probe into alleged ‘accommodation mafia’ after Public Protector finds NSFAS failures

The ANC Youth League (ANCYL) has called on the National Prosecuting Authority (NPA) to investigate an alleged “accommodation mafia” operating around NSFAS-funded student accommodation, after the Public Protector reported widespread failures at the student financial aid scheme.

What the ANCYL is demanding

The ANCYL said the scale of the Public Protector’s findings could not be treated as an administrative matter and that those responsible for the governance and administration of the National Student Financial Aid Scheme (NSFAS) must be held accountable. The league accused operators around NSFAS-funded accommodation of exploiting poor and working-class students through inflated prices and called for criminal investigations where appropriate.

“We call on the National Prosecuting Authority to investigate the accommodation mafia and the networks operating around NSFAS-funded accommodation, including allegations of price-fixing and collusion,” said ANCYL secretary-general Tsakani Shiviti.

The ANCYL added that those who had used students’ vulnerability to enrich themselves should be exposed and, “where criminal conduct was established, prosecuted.” It also warned that students should not be blamed for failures within NSFAS systems: “A student who received funding because NSFAS systems failed cannot be treated as the architect of that failure.”

Public Protector findings

The Public Protector found that systemic deficiencies affected the administration, governance, funding, co-ordination and oversight of student financial aid. The investigation identified that more than 40,000 students across 76 institutions were improperly funded, involving about R5.1 billion.

Calls for accountability and broader political responses

The ANCYL said the findings demanded accountability and that institutional failures should no longer be excused: “The time for institutional excuses is over. Accountability must follow,” Shiviti said. The league said it remained committed to defending NSFAS and expanding access to higher education for poor and working-class young people, but that commitment did not extend to protecting those who had failed students or abused public resources.

Separately, the Democratic Alliance (DA) called for the national structure of NSFAS to be scrapped and replaced with a decentralised funding model. DA higher education spokesperson Dr Delmaine Christians said the Public Protector’s findings increased pressure on Higher Education and Training Minister Buti Manamela and pointed to an earlier High Court ruling that suspended the appointment of Prof Hlengani Mathebula as NSFAS administrator and declared that appointment irrational.

The DA said it regarded the Public Protector’s update as significant and would consider the final report once the investigation was completed. The party argued that action must follow after the investigation’s conclusion.

What remains clear

Both the ANCYL and the DA have used the Public Protector’s findings to demand accountability and changes to how student funding and accommodation are managed. The ANCYL has specifically asked the NPA to examine alleged networks around NSFAS-funded accommodation, including price-fixing and collusion allegations, and to prosecute where criminal conduct is found.