R112m in payments to unqualified NSFAS beneficiaries to be paid back

The Special Investigating Unit (SIU) has signed acknowledgement of debt agreements (AoDs) with 421 students who did not qualify to be funded by the National Student Financial Aid Scheme (NSFAS) with a total value of R112m.

SIU spokesperson Kaizer Kganyago said an investigation by the unit has revealed the NSFAS failed to design and implement controls to ensure there is an annual reconciliation between funds disbursed to e institutions and the allocation of the funds to students.

"These control weaknesses have led to overpayments and underpayments of funds to the institutions over the period 2017 to date. The NSFAS has appointed a service provider to assist them in performing the reconciliation via a 'close-out reporting' process. The reconciliation process is ongoing."

The unit has also made progress in recovering unallocated funds, with the University of Fort Hare the latest university to pay back R277m. This brings total recoveries to more than R1bn.

The others are:

• University of Pretoria R400m
• University of Johannesburg R311.8m
• University of Zululand R58m
• University of Mpumalanga R33.6m
• Northlink College R33m
• Majuba TVET College R25m 
• Walter Sisulu University R19.9m
• Nkangala TVET R342,672
• West Coast College R5m.

Kganyago said: "The SIU is pleased with the cooperative attitude of parents and unqualified NSFAS beneficiaries who have signed AoDs agreeing to repay the money over time. The SIU is urging unqualified NSFAS beneficiaries who have not been in contact with the unit to come forward and arrange for repayment."

A year ago, SIU chief national investigations officer Leonard Lekgetho told MPs 40,044 students in 76 institutions of higher education were “unduly funded” by the state institution.

He said: “These are students whose household income is above R350,000 and therefore would not qualify for NSFAS funding based on the funding rules.”

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