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.