SIU Recovers R1.7 Billion for NSFAS to Support Students

The recovered amount forms part of the R2 billion secured so far by the SIU from higher education institutions, TVET colleges and unqualified former beneficiaries.

South Africa’s Special Investigating Unit (SIU) has recovered and returned R1.7 billion to the National Student Financial Aid Scheme (NSFAS), marking a major boost for student funding at universities and Technical and Vocational Education and Training (TVET) colleges across the country.

The recovered amount forms part of the R2 billion secured so far by the SIU from higher education institutions, TVET colleges and unqualified former beneficiaries. The funds will now be redirected to meet the needs of deserving students in higher education.

Unallocated Funds Recovered After Years

According to the SIU, the recovered money relates to unallocated NSFAS funds from 2016 to 2021. These funds were originally earmarked for students who qualified for financial aid but later deregistered or changed institutions. While institutions are permitted to retain such funds for up to one year, the SIU found that many held on to them far beyond this period.

The SIU attributed the prolonged retention of these funds to weak control systems and poor reconciliation processes within NSFAS during that time, which resulted in delays and failures in recovering the money from institutions of higher learning.

Governance Reforms Gain Momentum

The SIU welcomed NSFAS’s recent announcement that it is implementing the Unit’s systematic recommendations, including a data-driven reporting framework designed to ensure timely payments and stronger oversight. The new framework will generate monthly occupancy and payment reports, improving transparency and accountability across the system.

NSFAS has also indicated that it is exploring the introduction of an in-house payment functionality, a move expected to streamline financial management and remove intermediaries. The SIU commended NSFAS for these reforms, noting that they represent a decisive shift towards improved governance.

Recoveries from Individuals and Institutions

As part of the broader R2 billion recovery, the SIU has collected R126.47 million from 1 055 parents and unqualified NSFAS beneficiaries who signed acknowledgements of debt and committed to repaying the funds over time. The SIU has urged other unqualified beneficiaries who have not yet come forward to contact the Unit and make repayment arrangements.

Additional recoveries include:

• R69.7 million from the University of the Free State (second payment)

• R5.5 million from the University of Mpumalanga (second payment)

• R15 million from Tshwane North TVET College

Fighting Corruption, Protecting Public Funds

Operating under Proclamation R88 of 2022, the SIU is mandated to investigate allegations of corruption and maladministration within NSFAS and recover financial losses suffered by the State. The Unit is empowered to institute civil proceedings in the High Court or Special Tribunal and will refer any evidence of criminal conduct to the National Prosecuting Authority in line with the SIU and Special Tribunals Act of 1996.

Call to Action: Safeguarding Student Funding

The SIU reaffirmed its commitment to ensuring that public funds intended for education are protected and used for their rightful purpose. Institutions and individuals are urged to cooperate fully with recovery processes, as the reclaimed funds play a critical role in expanding access to higher education and supporting students who depend on NSFAS assistance.