The Special Investigating Unit (SIU) said on Friday it will launch an investigation into alleged corruption and maladministration at the National Student Financial Aid Scheme (NSFAS).
The probe was authorised by President Cyril Ramaphosa. He also authorised the SIU to recover any financial losses suffered by the state through corruption and negligence at NSFAS under Proclamation R.88 of 2022.
The SIU said the first part will look into the management of the scheme's finances and the second part will investigate the allocation of loans, bursaries and any other funding payable to students in terms of the provisions of the NSFAS Act.
“Furthermore, the SIU will also investigate related unauthorised, irregular or fruitless and wasteful expenditure incurred by the NSFAS or the state, including the causes of maladministration.
“The SIU will also investigate any unlawful or improper conduct by employees or officials of the NSFAS or the service providers in question, their employees or any other person or entity.” .
In December last year, a report prepared by auditing firm Kuhumelela — which was hired by a ministerial committee of inquiry to help review the financial management systems, controls, policies and procedures at the NSFAS from 2014 to 2020 — found there was limited oversight of risk-management activities.
It also stated that consultancy services were provided and payment made to the consultants without a signed contract to regulate their work.
The auditing company also found NSFAS paid R503.34m more to students than the amount stipulated in loan agreements.
The SIU said it is empowered to institute civil action in the high court or a special tribunal to correct any wrongdoing uncovered during the investigations caused by acts of corruption, fraud or maladministration.
It is empowered to refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action.
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SIU probing corruption and maladministration at NSFAS
Image: Sandile Ndlovu
The Special Investigating Unit (SIU) said on Friday it will launch an investigation into alleged corruption and maladministration at the National Student Financial Aid Scheme (NSFAS).
The probe was authorised by President Cyril Ramaphosa. He also authorised the SIU to recover any financial losses suffered by the state through corruption and negligence at NSFAS under Proclamation R.88 of 2022.
The SIU said the first part will look into the management of the scheme's finances and the second part will investigate the allocation of loans, bursaries and any other funding payable to students in terms of the provisions of the NSFAS Act.
“Furthermore, the SIU will also investigate related unauthorised, irregular or fruitless and wasteful expenditure incurred by the NSFAS or the state, including the causes of maladministration.
“The SIU will also investigate any unlawful or improper conduct by employees or officials of the NSFAS or the service providers in question, their employees or any other person or entity.” .
In December last year, a report prepared by auditing firm Kuhumelela — which was hired by a ministerial committee of inquiry to help review the financial management systems, controls, policies and procedures at the NSFAS from 2014 to 2020 — found there was limited oversight of risk-management activities.
It also stated that consultancy services were provided and payment made to the consultants without a signed contract to regulate their work.
The auditing company also found NSFAS paid R503.34m more to students than the amount stipulated in loan agreements.
The SIU said it is empowered to institute civil action in the high court or a special tribunal to correct any wrongdoing uncovered during the investigations caused by acts of corruption, fraud or maladministration.
It is empowered to refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action.
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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