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Millions Of Dollars Are Owed By TVET Colleges And Universities To NSFAS



Millions Of Dollars Are Owed By TVET Colleges And Universities To NSFAS

Millions Of Dollars Are Owed By TVET Colleges And Universities To NSFAS. The National Student Financial Aid Scheme (NSFAS) plays a crucial role in facilitating access to tertiary education for economically disadvantaged students in South Africa, managing a substantial budget of approximately R40 billion. However, recent investigations into NSFAS operations have unearthed significant challenges that could impede its core mission.

Investigation Findings

The investigation, spearheaded by the Special Investigating Unit (SIU), has revealed alarming instances of maladministration within NSFAS, potentially resulting in over R700 million needing to be returned to the scheme. Notably, students and Technical and Vocational Education and Training (TVET) colleges in Gauteng and the Western Cape have acknowledged debts totaling more than R49 million.

Recovery Efforts and Challenges

Building upon this, the SIU has successfully recovered approximately R688 million from various TVET colleges and universities. Major contributors to this recovery include the University of Johannesburg (UJ) and the University of Pretoria (UP), which returned R311.8 million and R200 million, respectively.

However, it’s not a one-sided issue. The SIU also revealed that NSFAS itself owes substantial amounts to institutions across different provinces, including R180 million to 10 institutions in the North West and Free State, R106 million to institutions in Limpopo, and R268 million to institutions in the Western Cape.

Causes of Fund Misallocation

The misallocation of funds primarily stems from the funding of over 40,000 ineligible students, resulting in a staggering loss of over R5.1 billion between 2018 and 2021. The investigation scrutinizes the allocation of loans, bursaries, and other funding, highlighting instances of unauthorized, irregular, and wasteful expenditure within NSFAS.


Factors contributing to the funding of ineligible students include overpayments, underpayments, missing students, and instances of students not attending institutions but still receiving allocations. These discrepancies often arise from inconsistencies in remittance advice, flawed validation processes, and inadequate feedback mechanisms.

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Impact and Implications

The ramifications of these financial discrepancies extend beyond NSFAS to the broader fiscal landscape. Depending on the direction of indebtedness, it could signify either institutions possessing state assets due to overpayments or NSFAS having outstanding liabilities due to budgeting errors.

Recommendations for Improvement

To address these challenges, the SIU recommends enhanced communication and process streamlining within NSFAS. Timely reconciliation of amounts distributed to institutions, establishment of control accounts for each institution, and regular reconciliation can bolster transparency and accountability in fund management.


Resolving the financial discrepancies between NSFAS and institutions is paramount to ensure the effective delivery of financial aid to deserving students and to safeguard the integrity of South Africa’s tertiary education system.

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