Parents involved in NSFAS funding fraud could face criminal charges, SIU warns
The Special Investigating Unit SIU has revealed widespread fraud within the National Student Financial Aid Scheme NSFAS, indicating that parents who provided false information to secure funding for their children could face criminal charges. While students might only be required to sign an admission of debt and repay R5.1 billion, their parents could face more severe legal consequences. The SIU's investigation, presented to the portfolio committee on higher education and training by acting head Leonard Lekgetho, found that 40,440 ineligible students obtained NSFAS funding by fabricating parental details. The SIU is also investigating 76 institutions, having visited 61 so far, including 24 universities and 37 technical and vocational education and training TVET colleges. Some institutions have begun repaying funds. NSFAS itself is implicated for failing to implement adequate financial management controls, leading to overpayments and underpayments over nine years. The SIU is working to recover outstanding balances from institutions, some of which are resisting repayment, claiming NSFAS owes them funds for the 2023 academic year. The SIU recommends that NSFAS conduct timely close-out reconciliations twice a year to prevent misuse of funds.