Nsfas recovers over R850 million following SIU probe
Nsfas also confirmed that the University of Johannesburg had repaid more than R3 million through the close-out reconciliation process.
The National Student Financial Aid Scheme (Nsfas) has clawed back over R850 million following irregular payments made to public universities and Technical and Vocational Education and Training (TVET) colleges.
According to a presentation to the portfolio committee on higher education by Nsfas on Wednesday, funds were recovered through the Special Investigating Unit (SIU). This followed years of procurement failures, poor financial controls, and non-compliance in the handling of student funding.
'Recoveries paid to date to NSFAS – R858 978 309.19,' stated Nsfas.
This figure is part of a broader R2.06 billion identified for recovery by the SIU. The recovery process is aimed at institutions across the higher education sector.
Of this, R477.6 million was paid back on 5 April 2024 and a further R381.3 million on 27 September 2024.
Top institutions implicated
Universities listed in the recovery process include the University of Fort Hare for R277.6 million, the University of Pretoria for R400 million, the University of the Witwatersrand for R450 million, and the University of the Free State for R438.1 million.
The amounts reflect historical overpayments, duplicate claims, or funding allocated outside the rules of the scheme.
Nsfas also confirmed that the University of Johannesburg had repaid R311.9 million through the close-out reconciliation process.
ALSO READ: Higher education minister apologises for late Nsfas payments, addresses appeals
'The application by the SIU at the Special Tribunal will not be premised on contractual law but public law,' the presentation noted.
Cleaning house
The SIU's probe into Nsfas was authorised through Proclamation R.88 of 2022 and is ongoing.
The agency is also pursuing legal action to set aside irregular contracts. This includes the controversial lease agreement for the Nsfas headquarters.
Nsfas has joined the SIU's application as a co-applicant.
Meanwhile, Nsfas says it has begun implementing 'all AGSA [Auditor-General South Africa] and SIU recommendations' as part of its turnaround strategy.
These include improving information and communication technology systems, enforcing contract compliance, and strengthening internal controls.
'Nsfas envisions a future where every eligible student, regardless of background, has equitable access to transformative education,' the report stated.
NOW READ: TVET students: Here is when your 2024 Nsfas allowances will be paid out
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