A local TVET college has been ordered to pay back over R33 million to the National Student Financial Aid Scheme (NSFAS) after the money was not allocated to students.
This comes as the Special Investigating Unit (SIU) recovers money that was irregularly spent for the first time since Proclamation R88 was signed in August.
Also read: University shutdown ends, after Nzimande reallocates R7bn to NSFAS
The proclamation authorises the SIU to investigate allegations of corruption and maladministration related to NSFAS and to recover money lost by the state through corruption and negligence.
According to SIU spokesperson Kaizer Kganyago, Northlink College, a technical and vocational education and training (TVET) college in Bellville, has informed the unit that it received in excess of R33 million, which was invested rather than allocated to students, between 2017 and 2021.
“The TVET college stated to the SIU that it is fully aware that the funds should have been returned to the NSFAS, but Northlink College has failed to do so, and instead decided to invest the funds and would return the funds on request from NSFAS,” said Kganyago.
According to the unit, the NSFAS investigation first looks at the management of the financial aid scheme before delving into the allocation of loans, bursaries and other funds payable to students in terms of the NSFAS Act of 1999.
Currently, the SIU is calculating the interest that was accrued by the investment over time, which will have to be paid into the Unit’s trust account.
Kganyago explained that the unit was able to institute civil actions in South Africa’s high courts and/or call a special tribunal to correct any wrongdoing uncovered through their investigation.
“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,” he said.
Also read:
NSFAS 2023 application cycle opens: here is all you need to do
Picture: Cape{town}Etc