Wits, UFS pay back close to R900m after NSFAS probe

The Special Investigating Unit (SIU) has welcomed the payment of close to R900m by the University of Witwatersrand (Wits) and the University of the Free State (UFS) to the SIU emanating from the National Student Financial Aid Scheme (NSFAS) investigation.

The SIU said the funds paid by Wits (R450m) and UFS (R438m) were unallocated for students who qualified for funding, but either changed institutions or deregistered between 2016 and 2021.

The SIU said the unallocated funds were supposed to have been collected by NSFAS at the end of each year from the institutions through reconciliation between the funds disbursed to the institutions and the funded list of registered students.

However, the SIU’s investigation revealed NSFAS failed to design and implement controls that would ensure the annual reconciliation.

“The payment made by Wits and UFS brings the total amount received from institutions of higher learning to about R1.7bn since the inception of the NSFAS investigation in September 2022,” the SIU said in a statement.

The SIU said to address this issue, the NSFAS has since hired a service provider to assist with the reconciliation process, referred to as “close-out reporting”.

“The SIU would like to express gratitude to the institutions and NSFAS for their co-operation.”

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