Student aid scheme probe concluded
• Final report on investigation under wraps as officials study findings
A forensic investigation into allegations of fraud and corruption in the allocation of National Student Financial Aid Scheme funds has been concluded and the Department of Higher Education said it was pushing to clean up the scheme. The contents of the report are yet to be made public.
A forensic investigation into allegations of fraud and corruption in the allocation of National Student Financial Aid Scheme (NSFAS) funds has been concluded and the Department of Higher Education said it was pushing to clean up the scheme.
The contents of the report are yet to be made public.
Minister Naledi Pandor said last week that the final report of the investigation was submitted to the department on March 15.
“The report is being analysed and measures based on the findings and recommendations will be considered,” she said in a written response to a question from the DA.
It will be imperative to ensure efficiency at NSFAS, with the government phasing in free higher education. The scheme has been dogged by corruption, which has seen countless disadvantaged youths missing out on higher education opportunities.
According to the 2018 budget review, the scheme would provide bursaries for undergraduate university and technical and vocational education and training college students from homes with a household income of below R350,000 a year.
The bursary will cover the full cost of study, which includes tuition, study material and subsidised meals and accommodation and/or a travel allowance.
In 2018, the bursary will cover students only in their first year of study. In 2019, the scheme will include first- and second-year students.
In 2015, then higher education and training minister Blade Nzimande launched an investigation into the scheme, following numerous allegations of fraud and corruption.
Pandor said the department had appointed Nexus Forensic Services in September 2015 to conduct an investigation into allegations of fraud and corruption in the allocation of the funds at 10 identified public universities and colleges.
Nexus was tasked with conducting a comprehensive audit for the 2012, 2013 and 2014 academic years to determine the extent of misrepresentation and fraud committed by students who qualified for and received financial aid — including parents and guardians, employees of universities, public technical and vocational education and training colleges, NSFAS and individuals who manipulated financial aid processes to defraud NSFAS.
The investigation was undertaken in phases, said Pandor. Phase 1 consisted of the analysis of data and supporting documentation aimed at identifying fraud risks across the 10 selected institutions.
The phase 1 report was presented to the minister in March 2016. During phase 1, Nexus identified specific cases of students and institutions that had been “red flagged” for further investigation in phase 2.
Phase 2 involved the original data analyses from phase 1 being verified and/or compared with the student application information and the institutions’ finalyear reports.
The investigators provided their report on phase 2 to the minister in March 2017. The phase 2 report pointed to possible irregularities in the allocation of funds to some students.
“[Nexus] identified different categories of potential irregularities, with a number of discrepancies within each category. They recommended that where there was a large percentage of alleged irregularities, samples of these categories should be further investigated,” said Pandor.
“The minister agreed that the investigation be extended, and that this would constitute the third and final phase of the investigation,” she said.
THE REPORT IS BEING ANALYSED AND MEASURES BASED ON THE FINDINGS … WILL BE CONSIDERED