The Special Investigating Unit (SIU) is investigating thousands of students who received over R5 billion in funding but did not qualify for the National Student Financial Aid Scheme (NSFAS). Leonard Lekgetho, head of investigations, revealed that over 40,000 students were given funding but did not qualify for NSFAS, with 76 institutions involved in the case dating back to 2018. Andy Mothibi, the head of the SIU, stated that they are investigating maladministration and financial mismanagement at NSFAS from 2018 to 2023.
Lekgetho also revealed that NSFAS has failed to design and implement controls to ensure an annual reconciliation between the funds disbursed to institutions and the allocation of those funds to the students. This control weakness has led to overpayments and underpayments of funds to different institutions over the period 2017 to date. NSFAS has recently appointed a service provider to assist in performing this reconciliation via 'close-out reporting'.
The SIU is also investigating a lease agreement signed with another company, which was irregularly entered into. The lease was R30 million a year for 10 years and was irregularly entered into. A quantity surveyor has been appointed to determine the necessity of the items installed during tenant installation and whether they meet the specification criteria determined by NSFAS.
