SIU recoups over R700m for NSFAS

A SPECIAL Investigating Unit (SIU) probe has assisted the National Student Financial Aid Scheme (NSFAS) in recouping more than R700 million from various institutions of higher learning across the country.

The unit disclosed this yesterday as it provided an update to Parliament’s standing committee on public accounts (Scopa) on the progress of investigations into the financial aid scheme.

According to the state’s anti-corruption agency, a total of R737 926 351 was recovered, the majority of which came from unallocated funds which amounted to R688 220 611.56.

The remaining R49 705 739.60 was recovered following signed acknowledgement of debt agreements reached with beneficiaries.

The unit explained that investigations into the affairs of the financial aid scheme had revealed that the large volume of unallocated funds was a result of poor control systems and a lack of reconciliation processes, which led to funds not being collected from the institutions.

Despite the poor systems, it said the institutions had co-operated with the unit when they were approached.

“Investigations revealed that NSFAS failed to design and implement controls to ensure that there is an annual reconciliation between the funds disbursed to the institutions and the allocation of those funds to the students.”

The failure in control systems, which dates back to 2017, had led to the overpayment and underpayment of funds to the different institutions, according to the unit.

Signed acknowledgement of debt agreements amounting to R49 705 739.60 with the Motheo Technical Vocational Education and Training (TVET) College in the Free State, and with as many as 4 000 parents and students who did not meet the funding criteria, were also received.

The unit recovered the funds from nine institutions, including R311 892 088.94 from the University of Johannesburg, R200 000 000 recovered from the University of Pretoria, as well as just over R33 million from the University of Mpumalanga and Northlink College.

Encouragingly, the financial aid scheme had reportedly already appointed a service provider to assist them in performing the reconciliation through a process called “close-out reporting”, which remained ongoing.

Accommodation challenges which have long plagued institutions were also investigated, with the SIU detailing how the physical addresses and details of landlords or owners of NSFAS-funded accommodations were not captured on their system nor were they vetted.

The investigations into NSFAS were announced in April 2023 by unit head Andy Mothibi, who said then that since 2017 over 4 000 students who did not qualify for funding were provided with money nonetheless.

Mothibi told Scopa then that NSFAS had spent more than R5 billion to pay or overpay students who did not qualify for funding.

Breakdown of funds recovered from institutions by the SIU:

■ West Coast College: R5 057 679

■ Walter Sisulu University: R19 900 174

■ Nkangala TVET College: R342 672.50

■ University of Zululand: R58 088 144.65

■ Majuba TVET College: R25 902 309.31

■ Northlink College: R33 369 404.97

■ University of Johannesburg:

R311 892 088.94

■ University of Pretoria: R200 000 000

■ University of Mpumalanga:

R33 668 136.56