More than R33 milllion NSFAS funds recovered from UMP

The Special Investigating Unit (SIU) has recovered R33 668 138.56 of unallocated funds from the University of Mpumalanga.
This was revealed last week Wednesday when the SIU presented its findings to Parliament’s Standing Committee on Public Accounts (SCOPA).
According to findings it has so far made a recovery totalling to R737 926 351. The figure includes R688 220 611.56 in unallocated funds and signed acknowledgement of debt agreements of R49 705 739.60 as part of an investigation into the affairs of the National Student Financial Aid Scheme (NSFAS).
The unallocated funds are due to poor control systems and a lack of reconciliation processes by NSFAS and were not collected from institutions of higher learning. When approached by the SIU, the institutions cooperated, which led to a quick recovery process.
Funds were also recovered from the following institutions of Higher Learning:
• West Coast College-R5 057 679.00
• Northlink College-R33 369 404.97
• Walter Sisulu- R19 900 174.00
• Nkangala TVET- R342 672.50
• University of Johannesburg- R311 892 088.94
• University of Zululand-R58 088 144.65
• University of Pretoria- R200 000 000.00
• Majuba TVET College- R25 902 309.31
This investigation has revealed that NSFAS failed to design and implement controls to ensure that there is an annual reconciliation between the funds disbursed to the institutions and the allocation of those funds to the students.
These control weaknesses have led to overpayments and underpayments of funds to the different institutions over the period 2017 to date. NSFAS has recently appointed a service provider to assist them in performing this reconciliation via a process called “close-out reporting”. The reconciliation process is still ongoing.
With regards to NSFAS-funded accommodation, the SIU found that details of the accommodation such as physical addresses and details of the landlord or owner of the accommodation were not captured on the NSFAS system. The physical address of the accommodation and landlord or owner was not vetted by the NSFAS.
The SIU is in terms of Proclamation R88 of 2022 authorised to investigate allegations of corruption and maladministration in the affairs of NSFAS and to recover any financial losses suffered by the State through corruption and negligence.

Related articles

Abducted woman’s body found at cemetery

The body of a 46 year-old woman who was abducted at Mphatseni, Masoyi has been found. According to police, three armed suspects forcefully took her in front of her children in the early hours of...

Woman collapses as homes are demolished

MATAFFIN- “As they chucked us out of the house I saw my mother lying down on the ground.” The above describes what transpired this morning in an area demarcated for a cemetery where some people...

WATCH: Junior and Peaceful laid to rest

DAANTJIE - The two murdered toddlers, Junior Mabandla and Peaceful Chambale were laid to rest on Tuesday in a joint funeral ceremony. Community members, faith based organisations and primary school learners gathered at the Old...

Newborn found at dumping site

A passerby made a gruesome discovery of a newborn dumped at a dumping site in Mjejane  near Komatipoort on Sunday afternoon. According to reports, the body had started changing from its original colour. Police and...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

The reCAPTCHA verification period has expired. Please reload the page.