Money recovered by the Special Investigating Unit (SIU) was returned to NSFAS. It forms part of the R2bn the SIU has so far received from universities, TVET Colleges, and unqualified former students.

Unallocated from 2016 to 2021, the funds represented financial resources that were designated for students who qualified for funding but later changed institutions or deregistered.

The SIU has also recovered almost R127m from 1,055 parents and disqualified NSFAS beneficiaries who signed an acknowledgement of debts promising to reimburse the money over time, contributing to the R2bn recovery.

“These funds are retained by the institution for one year, but in this case were kept for more than a year,” said SIU spokesperson Kaizer Kganyago.

“The existence of unallocated funds can be attributed to inadequate control systems and a lack of reconciliation processes implemented by NSFAS during that period, resulting in a failure to recover these funds from institutions of higher learning.”

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. 

During a media briefing at the GCIS offices in Pretoria on Tuesday, 6 January the scheme said it would introduce a robust data-driven reporting and reconciliation process, ensuring clear and timely reconciliation between NSFAS and accommodation providers.

“This will guarantee prompt payment to providers, thereby encouraging their continued participation in the scheme,” said NSFAS interim board chairperson Dr Mugwena Maluleke. “The upgraded system will generate monthly occupancy and payment reports directly from the central platform.”

This framework will improve accountability, generating monthly occupancy and payment reports, said Kganyago. The unit commends NSFAS for strengthening its systems and moving towards better governance.

The unit has received R69.7m from the University of the Free State, and this was the institution’s second payment towards recovering unallocated funds.

“Under the proclamation R88 of 2022, the unit is authorised to investigate allegations of corruption and maladministration within NSFAS and to recover financial losses suffered by the state as a result of corruption or negligence.” 

• Have a news tip to share? Phone or whatsapp the OFM News Hotline: 066 487 1427.

OFM News dg