SIU Recovers R1.7bn In NSFAS Funds As 2026 Student Registrations Begin

The Special Investigating Unit (SIU) has paid back R1.7 billion to the National Student Financial Aid Scheme (NSFAS), following the recovery of funds from universities, TVET colleges and students who were not eligible for financial assistance.

In a statement released on Tuesday, the SIU said the recovery coincides with the start of the 2026 academic year, as students across South Africa begin registering at higher education institutions.

The amount returned forms part of more than R2 billion recovered so far from higher education institutions and former NSFAS beneficiaries who did not qualify for funding.

NSFAS funds unaccounted for between 2016 and 2021

“The funds in question were unallocated from 2016 to 2021.

“These unallocated funds represent financial resources that were designated for students who qualified for funding but later changed institutions or deregistered,” the SIU said.

While institutions are allowed to hold such funds for a maximum of one year, the SIU found that in many cases the money was kept for far longer.

“The existence of unallocated funds can be attributed to inadequate control systems and a lack of reconciliation processes implemented by NSFAS during that period, resulting in a failure to recover these funds from institutions of higher learning,” it said.

New NSFAS framework aims to strengthen accountability

The SIU noted that NSFAS announced earlier this month it would implement the unit’s recommendations by rolling out a new framework built around a data-driven reporting system to ensure timely payments to service providers.

“This framework will improve accountability by generating monthly occupancy and payment reports. NSFAS also stated that it is considering an in-house payment functionality to streamline financial management and eliminate the middleman,” the SIU said.

The unit praised NSFAS for improving its internal controls and moving towards stronger governance.

Recoveries from unqualified students and institutions

“Contributing to the R2 billion recovery, the SIU has collected R126,478,184.64 from 1,055 parents and unqualified NSFAS beneficiaries who have signed acknowledgements of debt, agreeing to repay the money over time,” it said.

The SIU urged unqualified beneficiaries who have not yet come forward to contact the unit and make repayment arrangements.

“It further said it has received R69,727,824.22 from the University of the Free State.

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“This is the institution’s second payment towards recovering unallocated funds,” the SIU said.

Additional recoveries include a second payment of R5,502,040.09 from the University of Mpumalanga and R15 million from Tshwane North TVET College.

Breakdown of NSFAS funds recovered

Esayidi TVET College – R6,048,660.28

Majuba TVET College – R25,902,309.31

Motheo TVET College – R38,686,477.10

Northlink College – R33,369,404.97

Unqualified students – R126,478,184.64

Tshwane North TVET College – R15,000,000.00

University of Fort Hare – R277,666,450.00

University of the Free State – R438,163,285.00

University of the Free State (second payment) – R69,727,824.22

University of Mpumalanga – R33,668,138.19

University of Mpumalanga (second payment) – R5,502,040.09

University of Pretoria – R400,000,000.00

University of the Witwatersrand – R450,000,000.00

University of Zululand – R58,088,144.65

Walter Sisulu University – R19,900,174.00

West Coast College – R5,057,679.00

The total amount recovered stands at R2,003,258,771.47.

SIU mandate and next steps

The SIU said that under Proclamation R88 of 2022, it is authorised to investigate allegations of corruption and maladministration at NSFAS and to recover state losses linked to corruption or negligence.

The unit has the power to institute civil action through the High Court or the Special Tribunal where wrongdoing is uncovered.

“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence pointing to criminal conduct to the National Prosecuting Authority for further action,” it said.

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