STUDENTS who depend on National Student Financial Aid Scheme (Nsfas) can breathe a little easier.
This after the Special Investigating Unit (SIU) recovered a whopping R1,7 billion and returned it to the scheme's coffers.
The money, part of the R2 billion already recovered, was sitting unallocated at universities and TVET colleges between 2016 and 2021.
These were funds meant for qualifying students who later changed institutions or deregistered. Institutions are only allowed to hold such funds for one year, but in this case, some kept the money for far longer.
SIU spokesman, Kaizer Kganyago said the recovered funds will now be redirected to deserving students.
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"This R1,7 billion has been returned to Nsfas and will be allocated to students' needs at institutions of higher learning," said Kganyago.
He explained that weak control systems and a lack of proper reconciliation processes at Nsfas during that period allowed the money to remain unclaimed and unrecovered.
"The existence of these unallocated funds points to inadequate control systems and failure to reconcile accounts. That is why the SIU stepped in to ensure money meant for students is returned," he said.
The SIU has so far received close to R2 billion from institutions and unqualified beneficiaries.
Among the institutions that paid back money are:
- University of the Free State - R69,7 million (second payment)
- University of Mpumalanga - R5,5 million (second payment)
- Tshwane North TVET College - R15 million
In addition, the SIU recovered over R126 million from 1 055 parents and unqualified beneficiaries who signed Acknowledgements of Debt agreeing to pay back the funds.
Kganyago urged others who were wrongly funded to come forward.
"We are calling on unqualified Nsfas beneficiaries who have not yet engaged with the SIU to approach us and make arrangements to repay the money," he said.
Earlier this month, Nsfas announced it would implement the SIU's recommendations, including introducing a data-driven reporting system to improve accountability and ensure timely payments.
The SIU has welcomed the move.
