SIU Secures R112 Million in AoD Agreements from Ineligible NSFAS Students

SIU spokesperson, Kaizer Kganyago, reported that these AoDs amount to a total of R112,174,825.97.

The Special Investigating Unit (SIU) has signed Acknowledgement of Debt (AoD) agreements with 421 students who were ineligible for funding from the National Student Financial Aid Scheme (NSFAS). SIU spokesperson, Kaizer Kganyago, reported that these AoDs amount to a total of R112,174,825.97.

In addition to the AoDs, the SIU has made significant progress in recovering unallocated funds. The University of Fort Hare recently returned R277,666,450, bringing the total recoveries to R1,165,887,062. Kganyago outlined the recovered funds from various institutions of higher learning as follows:

West Coast College: R5,057,679.00

Northlink College: R33,369,404.97

Walter Sisulu University: R19,900,174.00

Nkangala TVET: R342,672.50

University of Mpumalanga: R33,668,138.19

University of Zululand: R58,088,144.65

University of Fort Hare: R277,666,450.00

University of Pretoria: R400,000,000.00

Majuba TVET College: R25,902,309.31

University of Johannesburg: R311,892,088.94

The SIU expressed gratitude to the cooperative parents and unqualified NSFAS beneficiaries who signed the AoDs and agreed to repay the money over time. They urged other unqualified beneficiaries to come forward and arrange repayment.

An SIU investigation revealed NSFAS's failure to design and implement proper controls to ensure annual reconciliation between disbursed funds and allocations to students, leading to overpayments and underpayments from 2017 to date. NSFAS has now appointed a service provider to assist in this reconciliation process, which is ongoing.

Under Proclamation R88 of 2022, the SIU is authorized to investigate allegations of corruption and maladministration within NSFAS and recover any financial losses suffered by the State due to these issues. The SIU can initiate civil actions in the High Court or Special Tribunal to address any wrongdoing identified during their investigations. Any evidence of criminal conduct uncovered will be referred to the National Prosecuting Authority (NPA) for further action, in accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996.

Kganyago emphasized the SIU's commitment to ensuring accountability and rectifying the control weaknesses that led to the financial discrepancies in NSFAS.