Higher Education and Training Deputy Minister Praises SIU for Recovering R112 Million in Irregular NSFAS Payments

by Selinda Phenyo
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Dr Mimmy Gondwe

By Phenyo Selinda

Pretoria, 19 July 2024 – The Deputy Minister of Higher Education and Training, Dr Mimmy Gondwe, has expressed commendation for the Special Investigation Unit (SIU) following their successful recovery of R112 million in irregular payments from the National Student Financial Aid Scheme (NSFAS). These funds had been erroneously disbursed to recipients who did not qualify for the aid.

“Two days after the Ministerial leadership team in the DHET [Department of Higher Education and Training] made a firm commitment to address the systemic governance issues at NSFAS, we commend the SIU for taking active steps to claw back irregular payments and send a clear message that abuse of the student funding system will not be tolerated,” said Dr Gondwe.

Background and Impact

The irregular payments, which spanned from 2017 to date, were uncovered due to weak controls within NSFAS. A total of 421 students from five universities and four Technical Vocational Education and Training (TVET) colleges have signed acknowledgment of debt agreements to repay the funds they received in error.

The SIU’s investigation revealed that these payments potentially deprived approximately 1,700 deserving students of financial support for at least one academic year. This situation highlights a critical issue in the management of student funding in South Africa.

Minister’s Statement

In a statement released on Friday, Dr Gondwe emphasised the broader impact of these irregular payments, noting that many deserving students might have been forced to drop out or defer their studies due to a lack of funding. “In a sense, there are many victims who may have dropped out or deferred their studies because they could not afford to pay the requisite academic fees. Every rand that is spent on an undeserving beneficiary robs a deserving one,” she stated.

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Higher Education and Training Deputy Minister Praises SIU for Recovering R112 Million in Irregular NSFAS Payments 7

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