The Special Investigation Unit (SIU) has revealed that it has managed to recoup a further R5.4-million from two institutions as its investigation into the National Student Financial Aid Scheme (NSFAS) corruption and maladministration scandal continues.
This brings the total of the amount recouped so far to R38.3-million following the recovery of R33-million from Northlink TVET College in Western Cape.
The unit was giving an update to the parliament’s standing committee on public accounts (Scopa) this week on its investigation into allegations of corruption and maladministration in the affairs of NSFAS, and its effort to recover any financial losses suffered by the state through corruption and negligence.
In its update, the SIU shared shocking findings that all 26 universities and all 50 TVET colleges in the country were under investigation for corruption and maladministration regarding the payment of NSFAS funds.
According to the SIU, NSFAS paid about R5.1-billion to institutions in the period between 2018 and 2021 for students who did not qualify for the funding.
The SIU reported in a statement in November last year that it had recovered R33 489 884 from Northlink College as part of investigations, indicating that it was the first actual recovery of government money since President Cyril Ramaphosa signed the proclamation authorising the unit to investigate, prosecute and recoup moneys related
to corruption and maladministration at NSFAS.
“Following the announcement of Proclamation R88 of 2022, the college informed the SIU that it received over R33-million from NSFAS that was not allocated to students between 2017 and 2021 and had invested it without authorisation,” the SIU said in a statement last year.
“The TVET college stated to the SIU that it is fully aware that the funds should have been returned to the NSFAS, but Northlink College has failed to do so, and instead decided to invest the funds and would return the funds on request from NSFAS. The SIU is currently calculating interest earned from the investment from the commencement date, and such interest would have to be paid into the SIU Trust account,” it said.
The R5.4-million that was recouped last month was recovered from two institutions; one from Western Cape (R5 057 679) and Mpumalanga (R342 672).
SIU spokesperson Kaizer Kganyago refused to disclose any further information regarding the investigation.
According the SIU’s presentation in parliament, after Gauteng, which received R1.99-billion paid to 15 institutions for 17 788 students who did not qualify, Western Cape is the second with R788-million for 5 481 students.
The SIU said the investigation, which is still in its early stages, would take a further 18 months to complete at a total estimated cost of R70-million to NSFAS.
Portfolio committee members were concerned about the exorbitant costs of conducting the investigation, citing the unlikelihood of SIU recovering money from students.
SIU’s Advocate Andy Mothibi assured the committee that the unit was monitoring the recovery rate against the cost of conducting its investigation. He said the investigation, which is still in its early stages, had recovered more than half of its investigation costs from just three institutions and was positive that they would recover more from institutions.
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