NSFAS also confirmed that Johannesburg University had paid more than R3 million through the close-out reconciliation process.
The National Students Financial Assistance Scheme (NSFAS) has returned more than the R850 million time after irregular payments made for public universities and technical and vocational education and training (TVET) colleges.
According to a presentation by the Portfolio Committee on Higher Education on Wednesday, the funds were recovered through the Special Investigation Unit (SIU). After this, years of procurement failures, poor financial control and non-transportation were followed in the operation of student funding.
NSFAS said, “NSFAS – R858 978 309.19 recovery,” NSFAS said.
The figure is a comprehensive R2.06 billion share identified by SIU. The recovery process is aimed at the objective of institutions in the higher education sector.
Of this, R477.6 million was paid on 5 April 2024 and on 27 September 2024 R381.3 million ahead.
Top institutions implicated
Universities listed in the recovery process include Fort Hare University for R277.6 million, Pretoria University for R400 million, Vitwatorsrand University for R450 million and free state university for R438.1 million.
The amount reflects the funds allocated outside the historical overpements, duplicate claims or the rules of the scheme.
NSFAS also confirmed that Johannesburg University had paid R311.9 million through close reconciliation process.
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“The application by SIU in a special tribunal will not be seen on the contractual law but the public law,” the presentation said.
Cleaning house
SIU investigations in NSFAS were authorized and run through R.88 of 2022.
The agency is also taking legal action to separate irregular contracts. This includes the controversial lease agreement for the NSFAS headquarters.
NSFAS has joined the application of SIU as a co-applicant.
Meanwhile, the NSFAS says it has begun to implement “All AGSA (Auditor-General South Africa) and SIU recommendations” as part of its turnout strategy.
These include improving information and communication technology systems, implementing contract compliance and strengthening internal controls.
The report states, “NSFAS imagines a future where every qualified students, regardless of the background, have the same access to transformative education.”
Now read: TVT Students: Here is when your 2024 NSFAS allowance will be paid