SIU returns R1.7bn to NSFAS coffers

The Special Investigating Unit (SIU) has returned R1.7 billion to the National Student Financial Aid Scheme (NSFAS), which it said was allocated to students' needs at institutions of higher education.

This amount is part of the R2 billion that the SIU has received from universities, TVET colleges and unqualified former students.

The funds in question were unallocated from 2016 to 2021.

The unallocated funds were designated for students who qualified for funding but later changed institutions or deregistered.

Funds that are not allocated are retained by the institution for one year, but in this case, they were kept for more than a year.

The SIU said 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 the funds from institutions of higher learning.

The SIU’s spokesperson, Kaizer Kganyago, explained: “Contributing to the R2 billion recovery, the SIU has collected R126,478,184.64 from 1,055 parents and unqualified NSFAS beneficiaries who have signed AoDs (acknowledgement of debt) 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.”

The SIU has also received a second payment from the University of the Free State to the tune of R69 million in unallocated funds, R5.5 million from the University of Mpumalanga and R15 million from Tshwane North TVET College.

“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,” added Kganyago.