NPA confirms investigation into 1,055 parents over R126 million in unqualified NSFAS funding

The National Prosecuting Authority (NPA) has confirmed it has received referrals from the Special Investigating Unit (SIU) following the recovery of more than R126 million from parents and unqualified National Student Financial Aid Scheme (NSFAS) beneficiaries for possible prosecution.

The SIU recently announced it had recovered R126,478,184.64 from 1,055 parents and unqualified beneficiaries who received NSFAS funding despite not qualifying. 

These individuals signed acknowledgements of debt (AoDs), agreeing to repay the funds over time.

The recovery forms part of more than R2 billion the SIU has recouped to date from institutions of higher learning and unqualified former NSFAS beneficiaries. Of this amount, R1.7 billion was returned by universities, TVET colleges and students who did not qualify for funding.

In a media release issued last week on Tuesday, the SIU said the recovery coincides with the start of the 2026 academic year, as students register at higher education institutions across the country.

The funds relate to unallocated NSFAS money 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.

Institutions are permitted to retain such funds for one year. However, in these cases, the money was held for longer periods.

“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,” the SIU said.

The unit said it had noted NSFAS’ announcement earlier this month that it would implement the SIU’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 SIU commended NSFAS for strengthening its systems and improving 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 come forward to make arrangements for repayment.

The unit also confirmed it received a second payment of 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 SIU has confirmed to IOL News that evidence indicating potential criminal conduct has been referred to the NPA for further investigation or prosecution.

“Yes, we have referred cases to the NPA,” SIU spokesperson Kaizer Kganyago said.

“These referrals are done as and when matters are finalised,” he said when asked about the timing of referrals.

NPA head of communications Bulelwa Makeke confirmed to IOL News that the authority has received referrals from the SIU relating to NSFAS matters involving unqualified beneficiaries, including cases where acknowledgements of debt have been signed.

“The NPA confirms that it has received referrals from the Special Investigating Unit (SIU) relating to cases involving unqualified NSFAS beneficiaries, including matters where acknowledgements of debt have been signed,” Makeke said.

However, she said more than 300 matters had been referred back to the SIU for outstanding investigations.

In determining whether conduct constitutes fraud, the NPA considers whether the available evidence meets the elements of the offence, including misrepresentation, intent, unlawfulness and prejudice, whether actual or potential.

“Each matter will be assessed on its own merits. The signing of an acknowledgement of debt does not in itself exclude criminal prosecution,” Makeke said.

“While such acknowledgements may be taken into account as part of the broader factual matrix, particularly as a mitigating factor during sentencing, they do not nullify potential criminal liability where evidence suggests intentional misrepresentation.”

She said decisions to prosecute are guided by admissible evidence and the public interest.

“The matters referred are at various stages of investigation,” Makeke said.

She added that some matters contain evidence that does not yet meet admissibility requirements for court proceedings.

“Consequently, the DPCI ( the Directorate for Priority Crime Investigation(DPCI), commonly known as the Hawks) is required to open dockets and conduct further investigations. Further details will be communicated as matters are enrolled in court, where appropriate.”

“The NPA reiterates its commitment to acting without fear, favour or prejudice in the prosecution of crimes involving the misuse of public funds,” she said.

The SIU 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 TVET College: R6,048,660.28

-Majuba TVET College: R25,902,309.31

-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

Total recovered: 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.

“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 has processed all 2026 funding applications ahead 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 met its commitment to finalise all applications by December 31, 2025.

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

Of these, 593,981 applications, or 66.45%, were from female applicants, while 299,866, or 33.55%, were from male applicants.

Applications included 520,545 from SASSA beneficiaries and 2,551 from students with disabilities.

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

First-time entry students accounted for 766,232 applications, while 125,157 were submitted by senior students.

In terms of age distribution, NSFAS received 428,632 applications from teenagers, 417,823 from applicants in their twenties, 42,186 from those in their thirties, 4,585 from individuals in their forties and 621 from applicants aged 50 and above.

simon.majadibodu@iol.co.za

IOL News