The Special Investigating Unit (SIU) has welcomed two prominent South African universities’ payment of R800 million back to the National Student Financial Aid Scheme (NSFAS).
The University of Witwatersrand (Wits) and the University of the Free State (UFS) paid the NSFAS R450 million and R438 million, respectively, following an investigation by the SIU.
Kaizer Kganyago, spokesperson for the SIU, said on Friday, December 6, the funds repaid by Wits and UFS were unallocated from 2016 to 2021.
These funds were generated by various events, such as students receiving multiple funding sources and changes in the total cost of study for an academic year.
“The payment made by Wits and UFS brings the total amount received from institutions of higher learning to approximately R1.7 billion since the inception of the NSFAS investigation in September 2022.
The unallocated funds were supposed to have been collected by NSFAS at the end of each year from institutions of higher learning through reconciliation. However, the SIU’s investigation revealed that NSFAS failed to design and implement controls that would ensure an annual reconciliation between the funds disbursed to the institutions and the funded list of registered students,” Kganyago added.
Kganyago said that to avoid repeating the issue, NSFAS has already hired a service provider to assist with the reconciliation process, which is referred to as “close-out reporting.”
NSFAS pays Bolland TVET College close to R 9 million
The SIU has also assisted in refunding almost R9 million (R 8 953 949.00) to Bolland TVET College. This represented NSFAS’s underpayments for the institution for the 2017 – 2022 academic years.
Kganyago added that the SIU intervened to ensure the quantification and payment of the amount owed by NSFAS to the institution, ensuring that the institution received what was due to it.
“The SIU would like to express gratitude to the institutions and NSFAS for their cooperation. The SIU is committed to ensuring that all parties receive what is owed to them so that student accounts can accurately reflect the correct balances,” he said.
In terms of Proclamation R88 of 2022, the SIU is 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,” Kganyago said in the statement.
He added that all information uncovered would be sent to the National Prosecuting Authority (NPA) for further action.
“The unit is empowered to institute civil action in the High Court or a Special Tribunal in its name, to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action,” Kganyago added.
