Key Takeaways:
- The Special Investigating Unit (SIU) has recovered R1.7 billion from universities, TVET colleges, and students who did not qualify for funding from the National Student Financial Aid Scheme (NSFAS).
- The recovered amount forms part of the more than R2 billion the SIU has recovered to date from institutions of higher learning and unqualified former NSFAS beneficiaries.
- The SIU has collected R126 million from 1,055 parents and unqualified NSFAS beneficiaries who have signed acknowledgements of debt.
- NSFAS has implemented a new framework to improve accountability and ensure timely payments to service providers.
- The SIU has received payments from various institutions, including the University of the Free State, University of Mpumalanga, and Tshwane North TVET College.
Introduction to the Recovery Process
The Special Investigating Unit (SIU) has made significant progress in recovering funds from universities, TVET colleges, and students who did not qualify for funding from the National Student Financial Aid Scheme (NSFAS). According to a media release, the SIU has recovered R1.7 billion, which forms part of the more than R2 billion recovered to date from institutions of higher learning and unqualified former NSFAS beneficiaries. This recovery comes as the 2026 academic year gets underway, with students registering at higher education institutions across the country.
Unallocated Funds and Recovery
The funds in question were unallocated from 2016 to 2021 and represent financial resources that were designated for students who qualified for funding but later changed institutions or deregistered. Institutions are permitted to retain such funds for one year, but in these cases, the money was held for longer. The existence of unallocated funds can be attributed to inadequate control systems and a lack of reconciliation processes implemented by NSFAS during that period, resulting in a failure to recover these funds from institutions of higher learning. The SIU noted that NSFAS has announced plans to implement a new framework that includes a data-driven reporting process to ensure timely payments to service providers.
New Framework and Improved Governance
The new framework will improve accountability by generating monthly occupancy and payment reports. NSFAS also stated that it is considering an in-house payment functionality to streamline financial management and eliminate the middleman. The SIU commended NSFAS for strengthening its systems and moving towards improved governance. The unit also collected R126,478,184.64 from 1,055 parents and unqualified NSFAS beneficiaries who have signed acknowledgements of debt, agreeing to repay the money over time. The SIU called on unqualified NSFAS beneficiaries who have not yet made contact to come forward and make arrangements for repayment.
Institutions and Recovery Amounts
The SIU received payments from various institutions, including the University of the Free State, which made a second payment of R69,727,824.22 towards recovering unallocated funds. The University of Mpumalanga also made a second payment of R5,502,040.09. Other institutions that made payments include Tshwane North TVET College, which paid R15 million, and Esayidi TVET College, which paid R6,048,660.28. The total grant recovered is R2,003,258,771.47. The SIU said that under Proclamation R88 of 2022, it is authorized to investigate allegations of corruption and maladministration within NSFAS and to recover financial losses suffered by the state as a result of corruption or negligence.
Investigations and Referrals
The SIU is empowered to institute civil action in the High Court or the Special Tribunal to address wrongdoing uncovered during its investigations. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence pointing to criminal conduct to the National Prosecuting Authority for further action. The unit’s investigations and recovery efforts are crucial in ensuring that NSFAS funds are used effectively and efficiently to support deserving students.
NSFAS Funding Applications
In a related development, NSFAS has processed all 2026 funding applications ahead of the start of the academic year, approving 609,653 applications and rejecting 49,538 after a rigorous review process. NSFAS board chairperson Dr. Mugwena Maluleke said the scheme had met its commitment to finalize all applications by December 31, 2025. The scheme received a record 893,847 applications, with 66.45% of applications coming from female applicants and 33.55% from male applicants. Applications included 520,545 from SASSA beneficiaries and 2,551 from students with disabilities.
Conclusion and Future Directions
The recovery of R1.7 billion by the SIU is a significant step towards ensuring that NSFAS funds are used effectively and efficiently to support deserving students. The implementation of a new framework by NSFAS to improve accountability and ensure timely payments to service providers is also a positive development. As the 2026 academic year gets underway, it is essential that NSFAS and the SIU continue to work together to address any issues and ensure that funds are used for their intended purpose. The SIU’s investigations and recovery efforts will play a crucial role in promoting good governance and accountability within NSFAS and the higher education sector as a whole.
