The Special Investigating Unit (SIU) has revealed that Motheo TVET College has signed an acknowledgement of Debt (AoD) for funds exceeding R38 million. The money was meant to fund financially vulnerable students approved for bursaries from the National Student Financial Aid Scheme (NSFAS).
NSFAS funds more than one million students currently enrolled at public universities and Technical and Vocational Education and Training (TVET) colleges. NSFAS will pay for a student’s tuition fees and registration fees while also allocating money for student allowances.
In previous years, NSFAS would distribute funds to institutions for student allowances. Institutions would then distribute the money to students.
Motheo TVET College has agreed to reimburse the NSFAS with R38,686,477.10. These funds, originally intended for students between 2017 and 2022, had remained unallocated due to students either changing institutions or deregistering.
These unspent funds were meant to be returned to NSFAS at the end of the specified period. However, this was not the case and Motheo TVET College will now need to pay the money back to NSFAS over the course of the next five years.
The unallocated funds are monies that were meant for students, who qualified for funding but either changed institutions or deregistered. The funds stayed in the institution's possession for a year and were supposed to return to NSFAS at the end of the period.
Motheo TVET College has committed to paying NSFAS back over the next 60 months at a monthly instalment of R855 679.91. This is the first AoD the SIU has signed with an institution of higher learning since the inception of the investigation.
In 2022, President Cyril Ramaphosa signed a proclamation allowing the SIU to investigate NSFAS operations between 2016 and August 2022. The investigation has uncovered inappropriate spending to the tune of R5 billion and colleges investing money that was meant to be returned to NSFAS.
in terms of Proclamation R88 of 2022, authorised to investigate allegations of corruption and maladministration in the affairs of NSFAS, and to recover any financial losses suffered by the State through corruption and negligence.
The SIU is urging other institutions of higher learning to refund unallocated NSFAS funds. To date, the SIU has successfully recovered over R421.3 million from various higher education institutions.
The SIU encourages other institutions of higher learning to come forward and pay back unallocated funds due to NSFAS.
They added that they will refer any evidence pointing to criminal conduct the SIU uncovers to the National Prosecuting Authority (NPA) for further action.
