The Special Investigating Unit (SIU) is set to recover over R112 million from students who were ineligible for the National Student Financial Aid Scheme (NSFAS) funding. Agreements to repay the funds have been signed with 421 students, highlighting a significant step towards addressing financial irregularities within the scheme. The Special Investigating Unit (SIU) has initiated a significant financial recovery effort, targeting students who wrongfully received funding from the National Student Financial Aid Scheme (NSFAS). According to SIU spokesperson Kaizer Kganyago, the unit has signed Acknowledgement of Debt (AoD) agreements with 421 students across various tertiary institutions, amounting to R112,174,825.97.
Kganyago emphasized the cooperative spirit demonstrated by the parents and students who have agreed to repay the funds. The SIU is also urging other unqualified NSFAS beneficiaries to come forward and arrange repayment terms. In parallel, the unit is making strides in recovering unallocated funds, with the University of Fort Hare recently returning R277,666,450. This brings the total recoveries to an impressive R1,165,887,062.
The investigation by the SIU has uncovered significant shortcomings in NSFAS’s financial controls. Specifically, there was a lack of an annual reconciliation process to ensure that funds disbursed to institutions were correctly allocated to students. These control weaknesses resulted in both overpayments and underpayments to various institutions from 2017 to the present. To address this, NSFAS has appointed a service provider to conduct a thorough reconciliation via a “close-out reporting” process, which is currently ongoing.
Authorized under Proclamation R88 of 2022, the SIU is empowered to investigate allegations of corruption and maladministration within NSFAS. This includes recovering financial losses incurred by the state due to corruption and negligence. The unit can initiate civil actions in the High Court or a Special Tribunal to rectify any wrongdoing uncovered during its investigations. Additionally, the SIU will refer evidence of criminal conduct to the National Prosecuting Authority (NPA) for further action.
Significant recoveries to date include:
- West Coast College: R5,057,679.00
- NorthLink College: R33,369,404.97
- Walter Sisulu University: R19,900,174.00
These efforts underscore the SIU’s commitment to ensuring financial integrity within the NSFAS and holding those responsible for financial mismanagement accountable.
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