Hundreds of undeserving NSFAS beneficiaries agree to pay back the money – SIU

More than 400 students who did not qualify to get funding from the National Student Financial Aid Scheme (NSFAS) have signed acknowledgement of debt with the Special Investigating Unit.

The SIU on Thursday said the total value of the acknowledgement of debts (AoD) by 421 students was R112m.

"The SIU is pleased with the cooperative attitude of parents and unqualified NSFAS beneficiaries who have signed AoDs, agreeing to repay the money over time.

"The SIU is urging unqualified NSFAS beneficiaries who have not been in contact with the unit to come forward and arrange for repayment," said SIU spokesperson Kaizer Kganyago.

"In addition to the AoDs, the SIU has made progress in recovering un-allocated funds with the University of Fort Hare being the latest university to pay back un-allocated funds of R277.666,450. This brings the total of recoveries to R1,165.887,062."

Kganyako gave a breakdown of amounts recovered so far:

West Coast College – R5m;

Northlink College – R33.3m;

Walter Sisulu University – R19.9m;

Nkangala TVET – R342,672;

University of Mpumalanga – R33.6m;

University of Zululand – R58m;

University of Fort Hare – R277.6m;

University of Pretoria – R400m;

Majuba TVET College – R25m.9; and

University of Johannesburg – R311.8m.

"The SIU investigation has revealed that NSFAS failed to design and implement controls to ensure that there is an annual reconciliation between the funds disbursed to the institutions and the allocation of those funds to the students.

"These control weaknesses have led to over-payments and underpayments of funds to the different institutions over the period 2017 to date. NSFAS has appointed a service provider to assist them in performing this reconciliation via a “close-out reporting” process. The reconciliation process is still ongoing," said Kganyago.

He said the unit, in terms of Proclamation R88 of 2022, was 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 empowered to institute a 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," said Kganyago.