SIU recovers R1.7 billion for NSFAS from Higher Education institutions

THE Special Investigating Unit has recovered R1.7 billion in unallocated NSFAS funds from universities, TVET colleges and unqualified students, bringing the total recovered amount to over R2 billion.

This comes as NSFAS implements new frameworks to improve accountability and financial management for the 2026 academic year

This comes as NSFAS reports processing over 600,000 funding applications for the upcoming academic year.

The SIU has also returned R1.7 billion to the National Student Financial Aid Scheme (NSFAS), recovered from universities, TVET colleges and students who did not qualify for funding.

The SIU said in a media release on Tuesday that the recovery came as the 2026 academic year got under way, with students registering at higher education institutions across the country.

The amount forms part of the more than R2 billion the SIU has recovered to date from institutions of higher learning and unqualified former NSFAS beneficiaries.

“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.

The unit said institutions are permitted to retain such funds for one year, but in these cases the money was held for 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.

The SIU noted NSFAS’ announcement earlier this month that it would implement the unit’s recommendations by introducing a new framework that includes a data-driven reporting process 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 commended NSFAS for strengthening its systems and moving towards improved governance.

“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 called on unqualified NSFAS beneficiaries who have not yet made contact to come forward and make arrangements for repayment.

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

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

The unit also received a second payment of R5,502,040.09 from the University of Mpumalanga, as well as R15 million from Tshwane North TVET College.

Funds recovered from institutions of higher learning:

Esayidi 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 grant is R2,003,258,771.47

The SIU said that under Proclamation R88 of 2022 it is authorised to investigate allegations of corruption and maladministration within NSFAS and to recover financial losses suffered by the state as a result of corruption or negligence.

The unit is empowered to institute civil action in the High Court or the Special Tribunal to address wrongdoing uncovered during its investigations.

“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.

IOL News previously reported that NSFAS said it has processed all 2026 funding applications ahead of the start of the academic year, approving 609,653 applications and rejecting 49,538 after a rigorous review process.

NSFAS board chairperson Dr Mugwena Maluleke said the scheme had met its commitment to finalise all applications by December 31, 2025.

Maluleke said: “We received a record 893,847 applications, a testament to the scale and importance of our mission,” he said.

Of these, 593,981 applications (66.45%) were from female applicants, while 299,866 (33.55%) were submitted by male applicants. 

He said applications included 520,545 from SASSA beneficiaries and 2,551 from students with disabilities.

Maluleke previously said about 218,043 applications remain incomplete due to outstanding documents, 16,862 have been cancelled, and 49,538 rejected.

First-time entry students accounted for 766,232 applications, while 125,157 came from senior students. 

“In terms of age distribution, we received 428,632 applications from teenagers, 417,823 from individuals in their twenties, 42,186 from those in their thirties, 4,585 from individuals in their forties, and 621 from applicants aged fifty and above,” Maluleke said.

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