SIU to investigate corruption, maladministration allegations at NSFAS

The Special Investigative Unit (SIU) has confirmed that it has been given permission to investigate corruption and maladministration allegations within the National Student Financial Aid Scheme (NSFAS).

President Cyril Ramphosa authorised the SIU’s investigation, which will look into the management of NSFAS’ finances as well as the allocation of loans, bursaries and any other funding payable to students.

“The proclamation covers allegations of unlawful and improper conduct that took place,” SIU spokesperson, Kaizer Kganyago said in a statement on Friday.

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Kganyago also said the conduct of NSFAS officials will also be looked into.

“The SIU will also investigate any unlawful or improper conduct by employees or officials of the NSFAS or the service providers in question, their employees or any other person or entity,” he added.

Furthermore, the SIU will seek to recover any monies lost by the state as a result of any wrongful actions at NSFAS and will refer any evidence pointing to criminal conduct to the National Prosecuting Authority (NPA) for further action, this is according to Kganyago.

The investigating unit previously launched its investigation into NSFAS and the affairs of the Central Johannesburg College (CJC) in April 2021.

Irregular expenditure

It was revealed in March 2020, that maladministration within NSFAS had resulted in irregular expenditure that amounted to R7.5 billion in 2017 and 2018.

NSFAS administrator Dr Randall Carolissen – who faced nepotism and mismanagement allegations – at the time told Parliament’s Select Committee on Education and Technology, Sports, Arts and Culture that up to R2 billion would be irrecoverable.

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As a result, several officials who were found to be involved in fraud and corruption – related to fraudulent student accounts and the funding of ineligible courses – were arrested and dismissed, while some cases were referred to the SIU for further investigations.

This also saw the office of the Public Protector conducting an investigation after receiving eight complaints on the irregular expenditure incurred by NSFAS.

Sibongile Mani

Earlier this year, Sibongile Mani was found guilty of theft by the East London Regional Court and sentenced to five years in prison.

Mani is a Walter Sisulu University (WSU) student who received more than R14 million into her student account from NSFAS and spent over R800 000 of it.

The R14 million was first paid to the WSU by NSFAS.

The university then transferred the money over to Intellimali, which had the responsibility of transferring monthly food allowance and a book stipend to over 18 000 students.

After the money was transferred into her account, she went on a spending spree with her friends, and bought 11 blankets, bath sheets, shorts for men, alcohol, cigarettes, 24 jackets and handbags.

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