UJ pays back R300m in unallocated funds to NSFAS
The University of Johannesburg has paid back R311 million to the National Student Financial Aid Scheme (NSFAS).
The unallocated funds were meant for students who qualified for funding but either changed institutions or deregistered.
The funds were paid to the university between 2016 and 2021 but were only meant to be in possession of the institution for a year.
Special Investigating Unit (SIU) spokesperson Kaizer Kganyago says the unallocated funds were supposed to have been collected by NSFAS at the end of each year from institutions of higher learning through reconciliation.
"The payment made by UJ brings the total amount received from institutions of higher learning to approximately R349.3 million since the inception of the NSFAS investigation in September 2022.
"However, the SIU’s investigation revealed that NSFAS failed to design and implement controls that would ensure that there is an annual reconciliation between the funds disbursed to the institutions and the funded list of registered students."
Kganyago says the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action.
"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.
"The SIU is empowered to institute civil action in the High Court or a Special Tribunal in its name, to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud, or maladministration."
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