It is alleged that these beneficiaries did not provide their parents' details during the application process, which led to an inaccurate means test being conducted.
This was uncovered by the Special Investigative Unit (SIU) as part of their investigation into the NSFAS operations between 2016 and August 2022.
The SIU reported that approximately R5 billion in NSFAS funds were wrongfully awarded to over 40 000 students who did not qualify for the funding. The probe has stretched to over 70 tertiary institutions across the country.
In a statement, the bursary scheme says it acknowledges and welcomes the SIU report presented in the Standing Committee on Public Accounts (Scopa) sitting held last Tuesday (18 April 2023).
NSFAS spokesperson, Kagisho Mamabolo noted that this is information that NSFAS shared with the SIU and covers earlier academic years up to 2019.
He explains, “This is based on cases where applicants falsified their application information to unduly benefit from the scheme. It was prevalent at the time when the scheme could not verify the information through a third party source data.”
NSFAS says that these verifications have now been embedded in the verification process since 2020.
When the SIU commenced its work, NSFAS had already initiated a process to de-fund these students and pursue recovery, Mamabolo adds
The bursary scheme now collaborates with the Department of Home Affairs, the South African Revenue Service (SARS) and credit bureaus to verify that students do not exceed the household income threshold.
Mamabolo further continued that this issue has been highlighted by of Higher Education Minister, Blade Nzimande in previous press briefings, where the minister reaffirmed his support of NSFAS efforts to hold those who defraud the scheme accountable.
In his address to officially open the 2023 application cycle, the minister welcomed the proclamation and sent a stern warning for those who continue to defraud NSFAS and to indicate that together with the law enforcement agencies, we are following all the cases where there are suspected instances of fraud and corruption.
Furthermore, Mamabolo added that NSFAS welcomed the SIU's focus on cracking down on those who want to unduly benefit from the scheme.
NSFAS believes that this will serve as a lesson and deterrent to students who want to unlawfully benefit to the detriment of poor and deserving students.
Mamabolo concluded that NSFAS will continue to improve controls to limit instances of those who benefit undeservedly adding that the scheme will fully cooperate with the SIU investigating team, as well as provide all the information and support that will ensure the exercise is fruitful.
