By Johnathan Paoli
The National Student Financial Aid Scheme (NSFAS) has addressed growing concerns over delayed payments for student accommodation, attributing the setbacks to the intricate and time-consuming nature of the verification process.
Through these verification processes, it says it has come across accommodation providers attempting to defraud the scheme and an investigation will be launched.
The scheme said in a statement that delays in receiving essential data from accommodation providers had also complicated efforts to ensure timely disbursements.
“While NSFAS is committed to ensuring that funds are disbursed promptly, it is equally important to maintain a rigorous verification process to guarantee that all claims are legitimate and in accordance with established policies,” it said in a statement.
NSFAS has acknowledged the frustrations expressed by accommodation providers following recent communication regarding the submission and processing of claims.
The funding scheme explained that its payment timelines were affected by delays in the submission of required data, which subsequently prolonged the verification process.
It said it had taken proactive steps to facilitate the smooth processing of claims.
On 27 January, the scheme approved and disseminated lease agreements, making them available for upload onto the designated accommodation portal.
It said the system was accessible on the same day across all portals, allowing accommodation providers to begin signing agreements immediately.
To maintain operational efficiency, NSFAS set a deadline of 14 March for the submission of payment claims for the current cycle.
Despite these measures, NSFAS said that verification remained a critical step in ensuring compliance with funding regulations.
The process involved multiple checks to confirm the legitimacy of claims and prevent fraudulent transactions.
During recent verification exercises, NSFAS reportedly uncovered cases of “ghost students”, individuals who were neither NSFAS beneficiaries nor enrolled in any public higher education institution.
This discovery has reinforced the necessity of stringent verification protocols to safeguard public funds.
“As a public entity, we have a duty to ensure that financial aid reaches legitimate students in need. The verification process is essential to prevent fraudulent claims and uphold the integrity of the system,” the scheme said.
NSFAS further indicated that it would launch investigations into accommodation providers who had submitted inaccurate or misleading information to unlawfully benefit from government funds.
The organisation reiterated its commitment to taking corrective action against those who attempted to exploit the system.
While acknowledging the operational difficulties that come with delayed payments, NSFAS stressed the need to strike a balance between timely fund disbursement and rigorous verification.
Accommodation providers, on the other hand, have raised concerns about the financial strain caused by these delays.
Many have warned that extended waiting periods could impact their ability to sustain housing services for NSFAS funded students.
Some stakeholders have called for improvements in NSFAS’s verification systems to expedite the process without compromising oversight.
Considering these challenges, NSFAS has urged accommodation providers to ensure that all data submissions were accurate and timely.
It said it remained committed to refining its processes and enhancing coordination with relevant stakeholders to mitigate future delays.
With thousands of students reliant on NSFAS for funding, the organisation faces mounting pressure to streamline operations while maintaining transparency and accountability.
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