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PHUTI MOSOMANE
THE Special Investigating Unit (SIU) has uncovered evidence suggesting that over R5 billion of the National Student Financial Aid Scheme (NSFAS) funds may have been disbursed to students who were not eligible for financial assistance.
During a recent briefing to the Parliament’s Standing Committee on Public Accounts (SCOPA), SIU head Andy Mothibi provided details on how this money had been used to illegally fund students who did not meet the criteria for financial aid.
Preliminary investigations have revealed that approximately 40,000 students across 76 institutions of higher education were awarded financial assistance from the National Student Financial Aid Scheme (NSFAS), despite having a household income that exceeded the maximum threshold of R350,000.
The SIU has the authority to initiate legal action in the High Court or a Special Tribunal, on its behalf, to remedy any wrongdoing uncovered during its investigations involving corruption, fraud, or maladministration.
In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996, any evidence of criminal activity discovered by the SIU will be referred to the National Prosecuting Authority (NPA) for further action.
During a briefing to the Parliament’s Standing Committee on Public Accounts, officials from the Department of Higher Education and NSFAS provided updates on their investigations into the National Skills Fund and NSFAS.
Higher Education DG Dr Nkosinathi Sishi noted that NSFAS is supporting 26 public universities, 50 colleges, and 9 community education training programs (excluding SETAS).
Sishi revealed that the funding allocated to working-class students has increased significantly from R21 billion in 2018 to R47 billion in the current term.
He also said that the number of students funded by NSFAS has increased from 586,000 in 2018 to 770,000 in 2021, with 80% of university students now receiving NSFAS funding to ensure access to higher education.
NSFAS Chairperson Ernest Khosa praised the transparency of the SIU’s investigations and expressed his satisfaction that the figures presented were in line with expectations.
He noted that the identification of fraudulent beneficiaries and exposure of mafias in student accommodations could help improve the execution of NSFAS’s mandate.
NSFAS CEO Andile Nongogo reported that the institution had received 37 fraud cases during the current financial period, with 14 cases having been finalized, 7 still in progress, and 16 not yet reviewed due to capacity constraints.
While the amount of illegitimate payments reported by NSFAS differed slightly from the SIU’s findings, Nongogo stated that the organization was fully committed to cooperating with the SIU’s investigations.
Members of the committee expressed concern about the recovery of the more than R5 billion in illegitimate payments made by NSFAS and questioned how the institution plans to address the issue.
INSIDE EDUCATION
