SIU Investigation recovers R33 million NSFAS Funds
NSFAS News – About R33 million in funding for the National Student Financial Aid Scheme was stolen from a TVET institution and returned to the government by the Special Investigating Unit (SIU) (NSFAS).
Northlink College allegedly notified the SIU about the funds following President Cyril Ramaphosa’s signing of a proclamation authorizing the corruption busting unit to probe the operations of NSFAS, as stated by SIU spokeswoman Kaizer Kganyago.
After receiving more than R33 million from NSFAS between 2017 and 2021 and without allocating it to students, the college notified the SIU that it had invested the money without permission.
He noted that Northlink College, the TVET institution in question, “indicated to the SIU that it is fully aware that the monies should have been returned to the NSFAS but instead decided to invest the funds and would refund the cash on request from NSFAS.”
Interest “received from the investment from the commencement date,” as Kganyago put it, is being calculated by the SIU. When interest is determined, it will be deposited into the SIU Trust.
The NSFAS Looks Into It
Kganyago said the unit can look into claims of corruption and maladministration at NSFAS and “recover any financial damages caused by the State via corruption or carelessness” according to a proclamation approved by President Ramaphosa.
The Special Investigations Unit is looking into allegations of poor management at NSFAS with respect to two of the agency’s core responsibilities. First, we’ll investigate how NSFAS’s money is handled inside. Part 2 will look into how the National Student Financial Aid Scheme Act governs the distribution of student aid like loans, grants, and bursaries.
The SIU is looking into the root causes of maladministration as well as any unauthorized, irregular, or unproductive and wasteful spending that the NSFAS or the State may have incurred. He added that the SIU is investigating whether or whether the NSFAS, the service providers in question, their employees, or anybody else engaged in any illegal or improper activity.
In addition to investigating claims of “unlawful and inappropriate behavior that took place” within the financial aid system, Kganyago said the proclamation spans a period of about six years, from 2016 to August of this year.