SIU recovers more than R1.7bn for Nsfas

The Special Investigating Unit (SIU) has recovered R1.7bn for the National Student Financial Aid Scheme (Nsfas), returning money that will be redirected to support students at higher education institutions across South Africa.

The amount is part of more than R2bn the SIU has so far clawed back from universities, TVET colleges and former students who were not qualified to receive funding.

The SIU said the funds in question were unallocated from 2016 to 2021 and represented financial resources that were designated for students who qualified for funding but later changed institutions or deregistered.

SIU spokesperson Kaizer Kganyago said while these funds are retained by the institution for one year, in this case, they were kept for more than a year.

Nsfas stated that it is considering an in-house payment functionality to streamline financial management and eliminate the middleman

Kganyago said the SIU collected R126m from 1,055 parents and unqualified Nsfas beneficiaries who have signed acknowledgement of debt, agreeing to repay the money over time.

The SIU also received R69.7m from the University of the Free State.

“This is the institution’s second payment towards recovering unallocated funds. The SIU has also received a second payment from the University of Mpumalanga of R5.5m, as well as R15m from Tshwane North TVET College,” he said.

The SIU urged unqualified Nsfas beneficiaries who have not been in contact with the unit to come forward and arrange for repayment.

Kganyago said the unallocated funds were due to inadequate control systems and a lack of reconciliation processes implemented by Nsfas during that period, resulting in a failure to recover the funds from universities and colleges.

“The SIU notes the announcement by Nsfas earlier this month to implement the SIU’s systematic recommendations by introducing a framework that includes a data-driven reporting process to ensure timely payments to providers.

“This framework will improve accountability, generating monthly occupancy and payment reports. Nsfas stated that it is considering an in-house payment functionality to streamline financial management and eliminate the middleman. The SIU commends Nsfas for strengthening its systems and moving towards better governance,” he said.

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