SIU recovers more than R737m in NSFAS investigation

The Special Investigating Unit (SIU) has so far recovered R737,926,351 in its investigation of the National Student Financial Aid Scheme (NSFAS).

According to the investigating unit, the figure includes R688,220,611.56 in unallocated funds and signed acknowledgment of debt agreements of R49,705,739.60.

Unit spokesperson Kaizer Kganyago said investigations revealed that NSFAS had failed to implement controls to ensure an annual reconciliation between funds disbursed to institutions and the allocation of those funds to students.

“These control weaknesses have led to overpayments and underpayments of funds to the different institutions over the period 2017 to date. NSFAS recently appointed a service provider to assist them in performing this reconciliation via a process called ‘close-out reporting’. The reconciliation process is still ongoing,” said Kganyago.

The SIU also found that Celbux — the e-wallet/voucher payment system — had many “dormant” accounts still active on its system dating back to 2018, amounting to an estimated R320m. This emerged when the SIU presented its findings to parliament’s standing committee on public accounts (Scopa) on Wednesday.

“When approached by the SIU, the institutions co-operated, which led to a quick recovery process,” Kganyago said regarding the more than R688m in unallocated funds.

He said the SIU also signed acknowledgment of debt agreements of R49,705,739.60 with Motheo Technical Vocational Education and Training (TVET) College in the Free State and with parents and students who did not meet the funding criteria.

On NSFAS-funded accommodation, the SIU found that details of the accommodation such as physical addresses and details of the landlord or owner of the accommodation were not captured on the NSFAS system.

The physical address of the accommodation and landlord or owner had not been vetted.

Kganyago said the SIU is in terms of Proclamation R88 of 2022 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 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, the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action.”

Funds recovered so far from institutions of higher learning include:

● University of Johannesburg — R311,892,088.94;

● University of Zululand — R58,088,144.65; and

● University of Pretoria — R200,000,000