The Special Investigating Unit (SIU) has announced that 421 students have signed Acknowledgement of Debt (AoD) agreements after being found ineligible for funding from the National Student Financial Aid Scheme (NSFAS). These agreements, totaling more than R112 million, will see the funds returned to the state.
NSFAS provides comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and TVET colleges. This funding is meant to assist students from poor and working-class backgrounds to pay for their tertiary education studies.
However, some ineligible students have previously submitted falsified information to secure this funding.
President Cyril Ramaphosa’s Proclamation R88 of 2022 empowered the SIU to investigate NSFAS, focusing on maladministration, improper or unlawful conduct by employees or officials, and the unlawful appropriation and expenditure of public funds. The investigation uncovered significant control failures within NSFAS, resulting in millions of rands being disbursed to ineligible students.
The SIU commended the cooperation of parents and ineligible NSFAS recipients who have agreed to repay the funds over a specified period. They continue to encourage others who have not yet come forward to arrange repayment terms.
In addition to the AoD agreements, the SIU has made significant progress in recovering unallocated funds. The University of Fort Hare recently returned over R277 million, bringing the total recovered to more than R1.1 billion. Other recovered amounts include:
- West Coast College: R5,057,679.00
- Northlink College: R33,369,404.97
- Walter Sisulu University: R19,900,174.00
- Nkangala TVET: R342,672.50
- University of Mpumalanga: R33,668,138.19
- University of Zululand: R58,088,144.65
- University of Fort Hare: R277,666,450.00
- University of Pretoria: R400,000,000.00
- Majuba TVET College: R25,902,309.31
- University of Johannesburg: R311,892,088.94
The SIU’s investigation revealed NSFAS's failure to establish and implement controls for annual reconciliation between disbursed funds and their allocation to students. These weaknesses led to overpayments and underpayments of funds from 2017 to date.
NSFAS has since appointed a service provider to assist with its reconciliation processes, which are ongoing.
