By: The Youth Voice Reporter
In a major breakthrough for accountability in higher education funding, the Special Investigating Unit (SIU) has successfully recovered R1.7 billion and returned it to the National Student Financial Aid Scheme (NSFAS), money that will now be redirected to support students at universities and TVET colleges across the country.
The recovered amount forms part of over R2 billion reclaimed from universities, TVET colleges and unqualified former students, following investigations into unallocated NSFAS funds dating back to 2016–2021.
According to the SIU, the funds were originally meant for qualifying students who later changed institutions or deregistered, but were improperly retained by institutions beyond the legally permitted one-year period.
“These unallocated funds should have been returned,” the SIU said, adding that weak control systems and poor reconciliation processes at NSFAS during that period allowed institutions to hold onto the money unlawfully.
SYSTEM FAILURES EXPOSED
The corruption-busting unit said the prolonged retention of student funds exposed serious governance and accountability failures, prompting a sweeping clean-up of NSFAS systems.
Earlier this month, NSFAS announced that it would implement SIU recommendations, including a data-driven reporting framework to ensure accurate tracking of student accommodation and payments. The scheme is also considering introducing an in-house payment system to eliminate reliance on intermediaries and tighten financial controls.
The SIU has commended NSFAS for taking decisive steps to strengthen governance and restore trust in the funding system.
PARENTS, STUDENTS AND INSTITUTIONS PAY BACK MILLIONS
As part of the recovery process, the SIU has already collected R126 million from 1 055 parents and unqualified beneficiaries who signed Acknowledgements of Debt, agreeing to repay funds over time.
Additional recoveries include:
- R69.7 million from the University of the Free State
- R5.5 million from the University of Mpumalanga
- R15 million from Tshwane North TVET College
The SIU has urged unqualified NSFAS beneficiaries who have not yet come forward to engage with investigators and make repayment arrangements.