SIU Recovers R1.7 Billion for NSFAS, Boosting Student Funding in South Africa

Significant Recovery for Student Financial Aid

The Special Investigating Unit (SIU) in South Africa has announced the successful recovery of R1.7 billion, which has been returned to the National Student Financial Aid Scheme (NSFAS). This substantial amount is part of a broader R2 billion identified by the SIU during its ongoing investigations into maladministration and financial irregularities within the student funding body. The recovered funds are earmarked to be redirected towards supporting deserving students at universities and Technical and Vocational Education and Training (TVET) colleges across the country.

Details of the Unallocated Funds

The recovered R1.7 billion primarily consists of funds that remained unallocated between the 2016 and 2021 academic years. These monies were originally intended for students who qualified for financial aid but subsequently deregistered or transferred to other institutions. While institutions are permitted to retain such funds for up to one year, the SIU's investigations revealed that many held onto these funds for periods far exceeding this limit.

The SIU attributed the prolonged retention and failure to recover these funds to 'weak control systems and a lack of proper reconciliation processes' within NSFAS during that period. This negligence contributed to financial losses and vulnerabilities to corruption.

Sources of Recovery and Institutional Accountability

The funds were recovered from various sources, including higher education institutions, TVET colleges, and even unqualified former students and their parents. Notable contributions to the recovery include:

• University of the Witwatersrand: R450 million
• University of Pretoria: R400 million
• University of the Free State: Over R500 million across two payments
• University of Fort Hare: R277.6 million
• Tshwane North TVET College: R15 million
• University of Mpumalanga: R39 million

Additionally, approximately R126 million was recovered from 1,055 parents and unqualified NSFAS beneficiaries who entered into repayment agreements. The SIU continues to urge other unqualified beneficiaries to come forward and make repayment arrangements.

Strengthening Governance and Future Outlook

The SIU's investigation operates under Proclamation R88 of 2022, which mandates the unit to investigate allegations of corruption and maladministration within NSFAS and recover financial losses. In response to the SIU's findings and recommendations, NSFAS has begun implementing reforms. These include the introduction of a 'data-driven reporting framework' designed to ensure timely payments and stronger oversight, as well as monthly occupancy and payment reports. NSFAS is also exploring the implementation of an 'in-house payment functionality' to streamline financial management and potentially remove intermediaries.

Higher Education and Training Minister Buti Manamela described the recovery as a 'turning point for student funding governance,' emphasizing that these public funds must be protected and used solely to support students from poor and working-class families.