SIU recovers R1.7 billion from universities in South Africa
The Special Investigating Unit (SIU) has recovered close to R1.7 billion from institutions of higher learning since the launch of its National Student Financial Aid Scheme (NSFAS) investigation in September 2022.
These figures were recently revealed by the SIU after announcing on 6 December that the University of Witwatersrand (Wits) and the University of the Free State (UFS) paid R450 million and R438 million, respectively, to the SIU.
The SIU said that the funds paid by Wits and UFS are unallocated amounts from the years 2016 to 2021 from NSFAS and were generated by various events, such as students receiving multiple sources of funding and changes in the total cost of study for an academic year.
“The payment made by Wits and UFS brings the total amount received from institutions of higher learning to approximately R1.7 billion since the inception of the NSFAS investigation in September 2022,” said SIU spokesperson Kaizer Kganyago.
Looking at R1.7 billion recovered thus far, the SIU said that the unallocated funds “were supposed to have been collected by NSFAS at the end of each year from institutions of higher learning through reconciliation.”
This did not happen
“The SIU’s investigation revealed that NSFAS failed to design and implement controls that would ensure an annual reconciliation between the funds disbursed to the institutions and the funded list of registered students,” said Kganyago.
Earlier this year, it was reported that the University of Pretoria (UP) fully paid R400 million that was due to NSFAS in unallocated funds, while the University of Johannesburg paid nearly R312 million, University of Fort Hare paid R277.66 million, the University of Zululand paid over R58 million and the University of Mpumalanga paid R33.67 million, among several other institutions.
Additionally, the SIU announced in July that it had signed Acknowledgement of Debt (AoD) agreements with 421 students who did not qualify to be funded by NSFAS amounting to R112.17 million.
Need for investigations
Back in August 2022, President Cyril Ramaphosa authorised the SIU to investigate allegations of serious corruption and maladministration in NSFAS’s operations and to recover any financial losses suffered by the State due to corruption and negligence.
Postdoctoral Fellow at the Centre for Humanities Research at the University of the Western Cape Sakhiseni Joseph Yende wrote how the entity, which sports an approximately R46 billion annual budget, faces “challenges, including unpaid loans from graduates, reduced funding for current students, and an ongoing corruption crisis.”
“These issues hamper NSFAS’s ability to provide essential financial support, underscoring the need for immediate reforms and strategic interventions,” said Joseph Yende.
To address the issue of unallocated funds, the SIU said that NSFAS has hired a service provider to assist with the reconciliation process, referred to as “close-out reporting.”
“The SIU would like to express gratitude to the institutions and NSFAS for their cooperation,” said Kganyago.
“The SIU is committed to ensuring that all parties receive what is owed to them so that student accounts can accurately reflect the correct balances,” he added.
The SIU emphasised that it is empowered to institute civil action in the High Court or a Special Tribunal, to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud, or maladministration.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the unit added that it will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action.
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