The Special Investigating Unit (SIU) has successfully returned R1.7 billion to the National Student Financial Aid Scheme (NSFAS), marking a major recovery of public funds meant to support students in higher education.
The recovered amount forms part of approximately R2 billion identified during investigations into maladministration and financial control failures at universities, TVET colleges and former students who were not eligible to receive NSFAS funding. Most of the recovered amount dates back to the 2016–2021 academic years, where funds were meant to be returned to NSFAS after students deregistered or transferred, but were instead retained by institutions due to poor reconciliation processes.
According to the SIU, several institutions have already returned large sums, including the University of the Free State, University of Mpumalanga and Tshwane North TVET College. In addition, around R126 million was recovered from parents and students who received funding unlawfully and entered into repayment agreements.
NSFAS has since begun implementing the SIU’s recommendations aimed at strengthening governance, improving financial reporting systems and preventing future losses. The SIU remains authorised to pursue civil litigation and refer criminal matters to the National Prosecuting Authority where corruption or fraud is identified.
The return of the R1.7 billion is expected to ease financial pressure on NSFAS and ensure that more qualifying students are supported through bursaries and allowances in the years ahead.