The Special Investigating Unit (SIU) has confirmed that 421 students have signed Acknowledgement of Debt (AoD) agreements with the unit. These students were ineligible for funding from the National Student Financial Aid Scheme (NSFAS) but received bursaries.
According to the SIU, The AoD agreements collectively amount to more than R112 million which will now be returned to the state.
NSFAS provides comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and TVET colleges. This funding is meant to assist students from poor and working-class backgrounds to pay for their tertiary education studies.
However, in the past, ineligible students would submit falsified information to the government bursary scheme to service NSFAS funding.
Proclamation R88 of 22 signed by President Cyril Ramaphosa granted the SIU authority to investigate various matters concerning NSFAS and empowered the unit to probe allegations of maladministration related to NSFAS’ affairs, improper or unlawful conduct by employees or officials, and unlawful appropriation and expenditure of public funds or property.
The investigation has been scathing of NSFAS's lack of controls which has led to several consequences, including funding ineligible students which has cost millions of rands.
The SIU is pleased with the cooperative stance of the parents and the unqualified NSFAS recipients who have agreed to repay the funds over a specified period. The unit has reiterated calls which encourage others who have not yet come forward to arrange repayment terms.
NSFAS beneficiaries who have not been in contact with the unit to come forward and arrange for repayment.
In addition to the AoDs, the SIU has made notable progress in recovering unallocated funds, with the University of Fort Hare being the latest to return more than R277 million. This recovery brings the total amount recouped to more than R1.1 Billion.
The funds recovered from various institutions of higher learning include:
- West Coast College: R5,057,679.00
- Northlink College: R33,369,404.97
- Walter Sisulu University: R19,900,174.00
- Nkangala TVET: R342,672.50
- University of Mpumalanga: R33,668,138.19
- University of Zululand: R58,088,144.65
- University of Fort Hare: R277,666,450.00
- University of Pretoria: R400,000,000.00
- Majuba TVET College: R25,902,309.31
- University of Johannesburg: R311,892,088.94
The SIU’s investigation revealed that NSFAS had failed to establish and implement controls ensuring annual reconciliation between disbursed funds and their allocation to students.
These control weaknesses have led to overpayments and underpayments of funds to the different institutions over the period 2017 to date.
The unit revealed that NSFAS has appointed a service provider to assist the scheme with its reconciliation processes through a “close-out” reporting process. The close-out reporting process remains ongoing.
