Earlier this year, President Cyril Ramaphosa signed a proclamation allowing the Special Investigating Unit (SIU) to investigate the financial affairs of the National Student Financial Aid Scheme (Nsfas).
The SIU was given the go-ahead to investigate possible corruption and maladministration at the financial aid scheme. More than R30 Million has already been recovered by the SIU during the first three months of the investigation.
Nsfas Board Chairperson Ernest Khosa says the SIU investigation enjoys the full support of Nsfas, as the investigation will result in the recovery of lost and lots of funds.
Khosa praised the SIU’s work so far. While the investigation remains in its early stages, the SIU received R33 million that was meant to be returned to Nsfas but was “invested” by a college.
Chairperson Khosa believes the investigation could also prevent fraudulent activity at the financial aid scheme in the future. They explained the investigation will also deter fraudsters from tampering with Nsfas’ systems.
Khosa also declared his satisfaction with the performance of the newly appointed CEO, Andile Nongogo. They explained that Nsfas had not had someone in the top position for some time before Nongogo's appointment. In addition, they are also satisfied with the scheme “functioning audit department” and the new corporate secretariat.
They said these new structural changes will enable the scheme to properly disburse funds to deserving students.
In 2021, the Auditor General (AG) detected around R77.5 billion in irregular expenditure at Nsfas. The scheme says they are working closely with the AG and they hope to reconcile funds that were sent to universities from 2016, which were meant to be returned to Nsfas.
AfriForum youth recently lodged a criminal complaint against Nsfas concerning this irregular expenditure. The group laid the criminal complaint on the basis that nobody has yet been arrested for the alleged misappropriation of funds.
Khosa said Nsfas welcomes the input of civil organisations. However, they argued that there is a big difference between the “irregular expenditure” detected by the SIU and the misappropriation of funds that AfriForum youth claims took place.
In 2023, Nsfas will receive R43 billion to ensure deserving students living in South Africa can obtain their tertiary education goals. Students who are approved for Nsfas bursaries will have their tuition and accommodation costs. They will also receive allowances for stationery, meals and transportation.
Khosa concluded that Nsfas has good management that is committed to good governance. They added that they are committed to working with all stakeholders, the AG, the portfolio committee, the shareholder, and even students to ensure Nsfas funds are used appropriately.
