By Thapelo Molefe

More than R1.7 billion meant for poor and working class students has been returned to the National Student Financial Aid Scheme (NSFAS) after an investigation exposed years of weak controls, unclaimed funds and payments to unqualified beneficiaries.

The Special Investigating Unit on Tuesday announced it had recovered the money from universities, TVET colleges, parents and former students.

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The R1.7 billion forms part of just over R2 billion the SIU has recovered so far in relation to unallocated NSFAS funds between 2016 and 2021.

These were funds set aside for qualifying students who later deregistered or moved institutions but were never returned to NSFAS, despite rules requiring institutions to release the money after one year.

According to the SIU, the failure to recover the funds was largely due to “inadequate control systems and a lack of reconciliation processes” within NSFAS during that period.

“The SIU has returned R1.7 billion to NSFAS’s coffers, which will be allocated to students’ needs at institutions of higher education,” the unit said in a statement.

“These funds represent public resources that must benefit deserving students.”

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A significant portion of the recovered amount came from higher education institutions.

The University of the Witwatersrand paid back R450 million, the University of Pretoria R400 million, and the University of the Free State over R500 million across two payments.

The University of Fort Hare returned R277.6 million, while TVET colleges including Majuba, Motheo and Tshwane North collectively repaid tens of millions of rand.

The SIU has also recovered more than R126 million from 1,055 parents and unqualified NSFAS beneficiaries who signed acknowledgements of debt and agreed to repay the money over time. The unit has urged other unqualified beneficiaries to come forward voluntarily.

The SIU welcomed NSFAS’s move to implement its recommendations, including a new data driven reporting framework and monthly occupancy and payment reports.

NSFAS is also considering bringing payment functions in-house to improve accountability and eliminate intermediaries.

Higher Education and Training Minister Buti Manamela described the recovery as a turning point for student funding governance.

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“The recovery of these funds is a significant step in restoring integrity, accountability and public confidence in the administration of student financial aid,” Manamela said.

“Every rand allocated to NSFAS is public money intended to support students from poor and working class families, and it must be protected and used strictly for that purpose.”

Manamela reaffirmed his support for the SIU’s mandate to investigate corruption, fraud and maladministration across post school education and training institutions.

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