Pretoria: The Special Investigating Unit (SIU) says it has returned R1.7 billion to the National Student Financial Aid Scheme (NSFAS) purse, which will be allocated to students' needs at institutions of higher education.
According to South African Government News Agency, the amount is part of the R2 billion that the SIU has so far received from universities, Technical and Vocational Education and Training (TVET) colleges, and unqualified former students. The funds in question were unallocated from 2016 to 2021, representing financial resources designated for students who qualified for funding but later changed institutions or deregistered, as stated by the SIU.
These funds, typically retained by institutions for one year, were kept for longer due to inadequate control systems and a lack of reconciliation processes implemented by NSFAS during that period. This oversight resulted in a failure to recover these funds from institutions of higher learning, the SIU noted.
The corruption busting unit acknowledged NSFAS's recent announcement to implement the SIU's systematic recommendations. These include a new framework with a data-driven reporting process to ensure timely payments to providers, aiming to improve accountability through monthly occupancy and payment reports. NSFAS is also considering an in-house payment functionality to streamline financial management and eliminate intermediaries.
The SIU commended NSFAS for its efforts to strengthen systems and move towards better governance. To contribute to the R2 billion recovery, the SIU has collected R126,478,184.64 from 1,055 parents and unqualified NSFAS beneficiaries who have signed acknowledgements of debt (AoDs), agreeing to repay the money over time. The unit is urging other unqualified beneficiaries to come forward and arrange for repayment.
Additionally, the SIU has received R69,727,824.22 from the University of the Free State, marking the institution's second payment towards recovering unallocated funds. Payments have also been received from the University of Mpumalanga, amounting to R5,502,040.09, and R15 million from Tshwane North TVET College.
Under Proclamation R88 of 2022, the SIU is authorised to investigate allegations of corruption and maladministration within NSFAS, working to recover any financial losses suffered by the State through corruption and negligence. The SIU is empowered to initiate civil action in the High Court or a Special Tribunal to address any wrongdoing uncovered during its investigations.