SIU to probe alleged NSFAS corruption & maladministration

Allegations made by a whistle-blower have led to the Special Investigating Unit (SIU) investigating allegations of corruption and maladministration at the National Student Financial Aid Scheme (NSFAS).

Following the recently gazetted proclamation by President Cyril Ramaphosa on August 26, the SIU has received authorization to look into the management of the finances of NSFAS, as well as the allocation of loans, bursaries, and any other funding payable to students.

“The process that we follow is very simple. We get allegations, and we got them some time back, and then we assess them. When we are happy, we send that to the president as a proclamation,” said SIU spokesperson Kaizer Kganyago.

“We cannot mention where it comes from for the protection of that whistle-blower.”

Kganyago said that the duration of the investigation would depend on the documentation received.

“Our teams will start trying to get information, and that will determine the scope and how long the investigation will be.”

The SIU will also probe any related unauthorised, irregular or fruitless and wasteful expenditure incurred by NSFAS or the state, including the causes thereof.

In addition to this, the SIU will look into unlawful or improper conduct by NSFAS employees or officials or service providers in question, their employees or any other person or entity relating to the allegations.

The proclamation will cover allegations of unlawful and improper conduct from between April 1, 2016, and August 26, 2022, or before and after the given dates should this be relevant to the investigation.

The SIU may institute civil action in the high court or a special tribunal in its name, as well as refer any evidence pointing to criminal behaviour to the National Prosecuting Authority for further action.

The Department of Higher Education, Science and Innovation was contacted for comment, but did not respond in time.

DA Shadow Minister for Higher Education Chantel King welcomed the investigation.

“The transition from a loan to a bursary system posed various challenges. Outdated IT systems, underfunded administration cost, and auditor-general concerns on the non-aligned legislative framework of NSFAS, were just some of the issues hampering its mandate.

“To date these challenges persist, leading to the questionable disbursement of bursaries, backlogged appeals and extensive delays in reporting,” she said.

-Cape Argus

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