The Special Investigating Unit (SIU) has been given the go-ahead to recover more than R112 million from unqualified National Student Financial Aid Scheme (NSFAS) students.

Spokesperson for the SIU, Kaizer Kganyago said the unit has signed Acknowledgement of Debt (AoD) agreements with 421 students from tertiary institutions around the country who did not qualify for NSFAS funding, to the tune of R112,174,825,97.

Kganyago said the unit is pleased with the cooperative attitude of parents and unqualified NSFAS beneficiaries who have signed AoDs agreeing to repay the money over some time.

"The SIU is urging unqualified NSFAS beneficiaries who have not been in contact with the unit to come forward and arrange for repayment. In addition to the AoDs, the SIU has made progress in recovering unallocated funds, with the University of Fort Hare being the latest university to pay back unallocated funds of R277,666,450. This brings the total of recoveries to R1,165,887,062," he said.

According to Kganyago, the SIU investigation has revealed that NSFAS failed to design and implement controls to ensure that there is an annual reconciliation between the funds disbursed to the institutions and the allocation of those funds to the students.

He explained that these control weaknesses had led to overpayments and underpayments of funds to the different institutions over the period 2017 to date. NSFAS has appointed a service provider to assist them in performing this reconciliation via a “close-out reporting” process. He said the reconciliation process is still ongoing.

"The SIU is in terms of Proclamation R88 of 2022 authorised to investigate allegations of corruption and maladministration in the affairs of NSFAS and to recover any financial losses suffered by the State through corruption and negligence.

“The SIU is empowered to institute a 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. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action," Kganyago said.

To date, the unit has recovered millions from various tertiary institutions:

West Coast College - R5,057,679.00

NorthLink College - R33,369,404.97

Walter Sisulu University - R19,900,174.00

Nkangala TVET - R342,672.50

University of Mpumalanga - R33,668,138.19

University of Zululand - R58,088,144.65

University of Fort Hare - R277,666,450.00

University of Pretoria - R400,000,000.00

Majuba TVET College - R25,902,309.31

University of Johannesburg - R311,892,088.94

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