Cape Town — The Special Investigating Unit (SIU) revealed that Wits University and the University of Free State (UFS) have paid back outstanding National Student Financial Aid Scheme (NSFAS) funds to the value of more than R800 million.
In a series of X posts, the SIU revealed that Wits paid R450 million and UFS paid R438 million to the SIU emanating from an NSFAS investigation.
“The funds paid by Wits and UFS are unallocated amounts from the years 2016 to 2021. These funds 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 SIU said.
SIU welcomes payment of over R800 million by WITS and UFS
The Special Investigating Unit (SIU) welcomes the payment of R450 million and R438 million made by the University of Witwatersrand (Wits) and the University of the Free State (UFS) respectively to the SIU emanating from… pic.twitter.com/DzC6sukXOB
— Special Investigating Unit (SIU) (@RSASIU) December 6, 2024
The payments made by Wits and UFS brought the total number of moneys received by higher institutions to approximately R1.7 billion, since the NSFAS investigation started in September 2022.
The unallocated funds were meant to be collected by NSFAS at the end of each year, but the SIU investigation revealed that NSFAS failed to implement controls that would ensure an annual reconciliation of funds disbursed and the funded list of students.
To address this issue, NSFAS has hired a service provider to assist with the reconciliation process, referred to as “close-out reporting”.
“NSFAS pays Bolland TVET College close to R 9 million The SIU has also assisted in the refund of R 8 953 949.00, this represented the underpayments that NSFAS has made to the institution for the 2017-2022 academic years,” it added.
NSFAS pays Bolland TVET College close to R 9 million
The SIU has also assisted in the refund of R 8 953 949.00, this represented the underpayments that NSFAS has made to the institution for the 2017-2022 academic years. With the intervention of the SIU, the amount owed by NSFAS… pic.twitter.com/g4NIEftQ1a— Special Investigating Unit (SIU) (@RSASIU) December 6, 2024
Due to the SIU’s intervention, the total amount owed by NSFAS was quantified and paid, ensuring each institution received what they were due.
“The SIU would like to express gratitude to the institutions and NSFAS for their cooperation. 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,” it added.
The SIU is, in terms of Proclamation of R88 of 2022 is authorised investigate allegations of corruption and maladministration in the affairs of NSFAS and to recover any financial losses suffered by the State due to corruption and negligence.
“The SIU is empowered to institute civil action in the High Court or a Special Tribunal in its name, to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud, or maladministration,” the SIU concluded.
The SIU is empowered to institute civil action in the High Court or a Special Tribunal in its name, to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud, or maladministration
— Special Investigating Unit (SIU) (@RSASIU) December 6, 2024
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Compiled by Matthew Petersen
