Special Investigating Unit on returned of over R1,7 billion into NSFAS’s coffers

The Special Investigating Unit (SIU) has returned R1.7 billion to the National Student Financial Aid Scheme (NSFAS)’s purse, which will be allocated to students' needs at institutions of higher education. This amount is part of the R2 billion that the SIU has so far received from universities, TVET Colleges and unqualified former students.

The funds in question were unallocated from 2016 to 2021. These unallocated funds represent financial resources that were designated for students who qualified for funding but later changed institutions or deregistered. These funds are retained by the institution for one year, but in this case were kept for more than a year. The existence of unallocated funds can be attributed to inadequate control systems and a lack of reconciliation processes implemented by NSFAS during that period, resulting in a failure to recover these funds from institutions of higher learning.

The SIU notes the announcement by NSFAS earlier this month to implement the SIU’s systematic recommendations by introducing a framework that includes a data-driven reporting process to ensure timely payments to providers. This framework will improve accountability, generating monthly occupancy and payment reports. NSFAS stated that it is considering an in-house payment functionality to streamline financial management and eliminate the middleman. The SIU commends NSFAS for strengthening its systems and moving towards better governance.

Contributing to the R2 billion recovery, the SIU has collected R126,478,184.64 from 1055 parents and unqualified NSFAS beneficiaries who have signed AoDs agreeing to repay the money over time. The SIU is urging unqualified NSFAS beneficiaries who have not been in contact with the unit to come forward and arrange for repayment.

Furthermore, the SIU has received R69,727,824.22 from the University of the Free State. This is the institution’s second payment towards recovering unallocated funds. The SIU has also received a second payment from the University of Mpumalanga of R 5,502,040.09, as well as R15 million from Tshwane North TVET College.

The SIU has so far recovered the following funds from institutions of Higher Learning:

The SIU, in terms of Proclamation R88 of 2022, is authorised to investigate allegations of corruption and maladministration in the affairs of NSFAS and to recover any financial losses suffered by the State through corruption and negligence.

The SIU is empowered to institute a civil action in the High Court or a Special Tribunal in its name, to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action.

Enquiries:
Spokesperson
Kaizer Kganyago
Cell: 082 306 8888
E-mail: KKganyago@siu.org.za

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