SIU Recovers Over R800 Million from Wits and UFS Amid NSFAS Investigation

The Special Investigating Unit (SIU) has announced substantial recoveries from two major South African universities, which cumulatively amount to over R800 million, as a crucial phase in the ongoing investigation into the disbursements by the National Student Financial Aid Scheme (NSFAS). The University of Witwatersrand (Wits) contributed R450 million, and the University of the Free State (UFS) returned R438 million following findings related to misallocated funds spanning from 2016 to 2021.

This significant financial return stems from the SIU's intensive scrutiny under Proclamation R88 of 2022, aimed at unearthing discrepancies in NSFAS allocations and ensuring the rectification of financial mismanagement in higher education funding. Historically, these funds were either doubly allocated to students receiving multiple funding sources or pertained to changes in the academic costs unaccounted for in annual reconciliations by NSFAS.

Adding to the complexity of managing these funds, the SIU identified that NSFAS failed in implementing effective controls to align the disbursements with the actual list of funded students annually. To correct this critical oversight, NSFAS has enlisted a third-party service provider to streamline the reconciliation process through what is termed as “close-out reporting.”

Furthermore, the efforts of the SIU extend beyond these universities. In a related development, Bolland TVET College received close to R9 million, addressing underpayments by NSFAS spanning from 2017 to 2022. This intervention by the SIU underscores the rigorous approaches being taken to ensure educational institutions and students are accorded the correct financial entitlements.

The corrective actions and the revelations from the investigation highlight significant administrative lapses at NSFAS, which have historically impacted the accuracy of fund distribution in the student financial aid landscape. These discoveries by the SIU have prompted a broader reassessment of NSFAS's operational procedures and their direct impact on tertiary education financing.

As it stands, the cumulative recoveries from various higher education institutions have reached an approximate total of R1.7 billion since the onset of this investigation in September 2022. The SIU's efforts underline a robust commitment to correcting financial discrepancies and holding accountable all stakeholders within the realm of higher education funding.

The investigative body has also been empowered to initiate civil actions in higher courts or through Special Tribunals to rectify any maladministration uncovered. Pertinently, any evidence of criminal activity disclosed during these probes will be forwarded to the National Prosecuting Authority (NPA) for further legal action, ensuring a holistic approach to justice and rectitude in managing public funds earmarked for education.

The SIU continues to express gratitude towards the cooperative efforts of both implicated institutions and NSFAS, emphasizing the collective goal to establish a transparent and efficient funding system that accurately reflects and supports student needs across South Africa.