SIU on Wits And UFS
The Special Investigating Unit (SIU) has announced the recovery of substantial unallocated funds from two of South Africa’s leading universities as part of its ongoing investigation into the National Student Financial Aid Scheme (NSFAS). The University of the Witwatersrand (Wits) has paid R450 million, while the University of the Free State (UFS) has contributed R438 million, bringing the total recovered from higher education institutions to approximately R1.7 billion since the investigation commenced in September 2022.
Background of the Investigation
The SIU’s probe into NSFAS was initiated under Proclamation R88 of 2022, authorising the investigation of allegations of corruption and maladministration within the scheme. The focus has been on unallocated funds from 2016 to 2021, arising from scenarios such as students receiving multiple funding sources or changes in the total cost of study during an academic year. These unallocated amounts were intended to be reconciled and returned to NSFAS annually. However, the SIU’s findings revealed that NSFAS lacked effective controls to ensure this reconciliation, leading to significant sums remaining with various institutions.
Details of the Recoveries
The recent payments by Wits and UFS are part of a broader effort to recover unallocated NSFAS funds. Earlier, the University of Johannesburg (UJ) settled R311 million in unallocated funds for the same period. Additionally, the SIU recovered over R33 million from Northlink College in the Western Cape and R38.8 million from Motheo TVET College in the Free State. These recoveries underscore the SIU’s commitment to rectifying financial discrepancies and ensuring that public funds are appropriately managed.
NSFAS’s Response and Measures
In response to the SIU’s findings, NSFAS has engaged a service provider to assist with the reconciliation process, known as “close-out reporting.” This initiative aims to establish robust controls to prevent future accumulation of unallocated funds and ensure timely reconciliation between disbursed funds and the actual financial needs of students.
Impact on Beneficiary Institutions
The SIU’s efforts have also facilitated the disbursement of funds owed to institutions. For instance, Boland TVET College received close to R9 million, representing underpayments by NSFAS for the academic years 2017 to 2022. Through the SIU’s intervention, the owed amounts were quantified and paid, ensuring that institutions receive their due funds and that student accounts accurately reflect correct balances.
Statements from the SIU
The SIU has expressed gratitude to the involved institutions and NSFAS for their cooperation. The unit remains dedicated to ensuring that all parties receive what is owed to them, thereby promoting financial integrity within the higher education sector. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU is empowered to institute civil action to correct any wrongdoing uncovered during investigations and will refer any evidence of criminal conduct to the National Prosecuting Authority for further action.
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