SIU recovers funds of R33m from TVET college
Investigating unit probes corruption at NSFAS
The Special Investigating Unit (SIU) says it has recovered R33.4m from Northlink College in the Western Cape as part of its National Student Financial Aid Scheme (NSFAS) investigations.
This is the first recovery of government money since the SIU was authorised by a proclamation signed by President Cyril Ramaphosa in August to investigate alleged corruption and maladministration at the NSFAS.
Northlink College is a technical and vocational education and training (TVET) college that receives NSFAS funding for students who need financial aid to further their studies.
After the announcement of the proclamation, the college informed the SIU it received more than R33m from the NSFAS that was not allocated to students between 2017 and 2021 and had invested it without authorisation.
“The TVET college told the SIU it is fully aware the funds should have been returned to the NSFAS, but Northlink College failed to do so, and instead decided to invest the funds.
“It said it would return the funds on request from the NSFAS,” the SIU said.
The investigative unit said it was calculating interest earned from the investment and this would have to be paid into the SIU trust account.
The proclamation authorised the SIU to also recover any financial losses suffered by the state through corruption and negligence.
The SIU is also investigating related unauthorised, irregular or fruitless and wasteful expenditure incurred by the NSFAS or the state, including the causes of maladministration.
The SIU is probing unlawful or improper conduct by employees or officials of the scheme or the service providers in question, their employees or any other person or entity.
The proclamation covers allegations of unlawful and improper conduct that took place between April 1 2016 and August 26 this year.