Free State TVET college to return R38m to Nsfas
Motheo TVET College in the Free State has signed an agreement with the Special Investigating Unit (SIU) to pay back more than R38 million to the National Student Financial Aid Scheme.
The money is unallocated funds from Nsfas to Motheo TVET College from 2017 to 2022.
The funds that were meant for students who qualified for funding but either changed institutions or deregistered.
However, it stayed in the institution's possession for a year after it was supposed to have been returned to Nsfas at the end of the period.
SIU spokesperson Kaizer Kganyago says the college will pay a monthly instalment of around R850 000 over a period of 60 months.
"This is the first Agreement of Debt the SIU has signed with an institution of higher learning since the inception of the investigation. The SIU encourages other institutions of higher learning to come forward and pay back unallocated funds due to Nsfas.
"The SIU has so far recovered over R421.3 million from institutions of higher learning. The SIU's preliminary investigation has revealed that more than R5 billion Nsfas money was possibly allocated to students who did not qualify to be funded."
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