The Special Investigating Unit (SIU) continues its efforts to recover funds owed to the National Student Financial Aid Scheme (NSFAS), including monies owed by both undeserving students and institutions. The SIU briefed the Parliamentary Committee on Higher Education last week on its ongoing investigations.
NSFAS provides comprehensive bursaries and student loans to deserving students enrolled in approved courses at universities and TVET colleges. NSFAS funding covers tuition and registration fees, as well as several allowances for food, accommodation, and learning materials.
SIU Head Advocate, Andy Mothibi detailed the unit's findings, highlighting NSFAS’ failure to design and implement controls for annual reconciliation between disbursed funds and their allocation to students.
This oversight has resulted in overpayments and underpayments to universities and TVET colleges since 2017. The SIU estimates it has recovered R2 billion through its NSFAS investigation.
The SIU has called for improved internal controls at NSFAS to prevent errors and ensure accountability. NSFAS is currently conducting a "close-out reporting" process to match disbursed funds with actual amounts owed, identifying potential overpayments and outstanding balances. However, this reconciliation remains incomplete, meaning the full extent of overpayments and debts is not yet known.
President Cyril Ramaphosa's Proclamation R88 of 2022 authorized the SIU to investigate NSFAS, focusing on maladministration, improper conduct by employees or officials, and unlawful appropriation and expenditure of public funds.
The SIU's mandate includes taking legal action, such as civil proceedings and referrals to prosecuting authorities for criminal conduct. They can also recommend disciplinary action and recover financial losses.
Portfolio committee chair Tebogo Letsie emphasized the systemic challenges hindering fraud resolution within NSFAS.
When acting on proclamations, the SIU often faces protracted response times from the National Prosecuting Authority and the Department of Justice. These delays undermine accountability; officials under investigation may resign, retire, or leave their posts, making it difficult to recover misappropriated funds or hold individuals responsible.
Letsie also criticized unethical practices, noting that some students fraudulently access funding, depriving deserving candidates, sometimes with the assistance of NSFAS employees.
"There are students who fraudulently access funding, depriving deserving candidates of opportunities. Even more alarming, some NSFAS employees knowingly approve of ineligible applicants, perpetuating this injustice."
The SIU’s investigation is scheduled to conclude in March 2025, but this timeline may be extended.
We aim to complete the investigation by the 31st of March but based on the magnitude of some of the matters we might be in a position to continue with other matters.
"With the intervention of the SIU, the amount owed by NSFAS to the institution was quantified and paid, ensuring that the institution receives what is due to them."
While the SIU has recovered significant funds, NSFAS is also owed money. Last year, the SIU facilitated the refund of nearly R9 million to Boland College, representing underpayments from NSFAS for the 2017-2022 academic years.
