Cape Town – Former public protector Thuli Madonsela has urged Justice Minister Ronald Lamola to take action following findings by the Special Investigating Unit (SIU) that the National Student Financial Aid Scheme (NSFAS) may have used more than R5 billion to fund “unqualifying” students between 2018 and 2021.
Madonsela called on the minister to implement measures to urgently recover the money.
Presenting its findings to Parliament’s Standing Committee on Public Accounts (Scopa) this week, SIU revealed that more than 40 000 students in 76 institutions of higher education were possibly funded incorrectly.
“The SIU’s investigations have so far revealed that more than 40 000 students in 76 institutions of higher education have been possibly funded incorrectly.
“These are students whose household income is above R350 000 and therefore would not qualify for NSFAS funding based on the funding rules. These students did not submit their parent’s details upon application and therefore the means test was not properly conducted.
“Furthermore, the SIU has facilitated a refund or managed to ring fence approximately R38,3 million possibly due to NSFAS from three TVET colleges.
“Two of these colleges are in the Western Cape and one from Mpumalanga, the SIU is in the process of engaging other institutions to determine if there are holding any overpayments that need to be ring fenced pending the finalisation of the investigation,” the SIU said.
Madonsela said the money could be used to fund student debt, student accommodation, school infrastructure, among other things.
“Dear Minister of Justice. During my term as public protector, I advocated for giving priority to measures to get back the money expeditiously. Can we do so on this and state capture looting? This could fund student debt, student accommodation, school infrastructure etc,” said Madonsela.
Missing middle concerns are valid. That’s why @StellenboschUni has projects such as the Rector’s #BridgeTheGap and #Action4Inclusion initiative, which is our partnership project with the SRC that has seen dozens of students re-register and graduate.But theft exists and is wrong
— Prof Thuli Madonsela #KindnessBuilds (@ThuliMadonsela3) April 19, 2023
She said “missing middle concerns” were valid.
“That’s why Stellenbosch University has projects such as the rector’s Bridge The Gap and Action4Inclusion initiative, which is our partnership project with the SRC that has seen dozens of students reregister and graduate. But theft exists and is wrong,” she said.
Meanwhile, according to eNCA, the NSFA has welcomed findings by the SIU.
However, board chairperson, Ernest Khoza said he was confident the loopholes had now been closed, the report said.
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Compiled by Betha Madhomu