The Special Investigating Unit (SIU) has recovered over R33 million from Northlink College in the Western Cape as part of its probe into the National Student Financial Aid Scheme (NSFAS) finances.
This after President Cyril Ramaphosa authorised an investigation into allegations of corruption and maladministration in the affairs of NSFAS.
Northlink College is a technical and vocational education and training (TVET) college that receives NSFAS funding for students who need financial aid to further their studies.
After the announcement of the proclamation, the college informed the SIU it received more than R33 million from NSFAS that was not allocated to students between 2017 and 2021 and had invested it without authorisation.
“The TVET college told the SIU it is fully aware the funds should have been returned to NSFAS, but Northlink College failed to do so and instead decided to invest the funds. It said it would return the funds on request from the NSFAS,” the SIU said.
“The SIU is currently calculating interest earned from the investment from the commencement date, and such interest would have to be paid into the SIU Trust account,” Kaizer Kganyago, the SIU spokesperson said.
“The SIU investigation focuses on maladministration at NSFAS regarding two functions of the organisation. The first part will look into the management of NSFAS finances.”
It added that the second part would be to investigate the allocation of loans, bursaries and any other funding payable to students in terms of the provisions of the NSFAS act.
“Furthermore, the SIU is also investigating related unauthorised, irregular of fruitless and wasteful expenditure incurred by the NSFAS or the state, including the causes of maladministration.
“The SIU is also probing any unlawful and improper conduct by employees or officials of NSFAS or the service providers in question, their employees or any other person or entity.”
Source: IOL, The South African, The Citizen, Times Live, image from Twitter: @SISONKE_MD