The University of Johannesburg (UJ) has paid back a total of R311,000 000 to the National Student Financial Aid Scheme (NSFAS), according to a statement from Special Investigating Unit (SIU) spokesperson Kaizer Kganyago.
The payment made by UJ is part of the unallocated funds from 2016 to 2021 that were for students who qualified for funding but either changed institutions or deregistered.
The funds remained in the possession of the institution for a year, but were supposed to have been collected by NSFAS at the end of each year from institutions of higher learning through reconciliation.
The SIU's investigation revealed that NSFAS failed to design and implement controls that would ensure an annual reconciliation between the funds disbursed to the institutions and the funded list of registered students.
One of the first things that struck us was that when we looked at the monies that were given in lump sums, through the universities or colleges. We found that there was no accountability. The money would be sent, but instead of the money being brought back after a year it was not.
To remedy this, NSFAS has recently appointed a service provider to assist them in performing the reconciliation process, which is called "close-out reporting."
SIU Spokesperson, Kaizer Kganyago welcome the payment made by the university which has significantly added to funds that have so far been recovered by NSFAS under similar circumstances.
"The Special Investigating Unit welcomes the payment of R311 million made by the University of Johannesburg to the National Student Financial Aid Scheme (NSFAS).
The payment made by UJ brings the total amount received from institutions of higher learning to approximately R349.3 million since the inception of the NSFAS investigation,” Kganyago added.
Since September last year, the SIU has been authorized to investigate allegations of corruption and maladministration in the affairs of NSFAS and to recover any financial losses suffered by the state through corruption and negligence.
The SIU's Authority In Conducting The NSFAS Investigation
The SIU is also empowered to institute civil action in the High Court or a Special Tribunal in its name to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud, or maladministration.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action.
The SIU's investigation is ongoing, and more institutions of higher learning are expected to still pay back unallocated funds that are due to NSFAS. After a year of the probe, the SIU intends to issue an interim report to the President on its findings.
