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How Much NSFAS Spent On Undeserving Students | SIU Investigation



How Much NSFAS Spent On Undeserving Students | SIU Investigation

How Much NSFAS Spent On Undeserving Students | SIU Investigation. NSFAS, tasked with ensuring financially disadvantaged students can access higher education, has come under scrutiny due to revelations of misallocated funds. The Special Investigating Unit (SIU) uncovered substantial spending on ineligible students, shedding light on the need for improved oversight and accountability in financial aid distribution.

How Much NSFAS Spent On Undeserving Students | SIU Investigation

NSFAS failed to design or implement controls to ensure that the funds disbursed to the institutions and allocated to students are reconciled annually, according to the SIU investigation.

Uncovering Misallocation

The SIU’s investigation exposed NSFAS disbursement of billions of rands to students who didn’t meet eligibility criteria. Between 2018 and 2021, over R5.1 billion was spent on more than 40,000 students across 76 institutions in South Africa.

Regional Discrepancies

A breakdown of expenditure by province reveals significant misallocation across the nation. From Gauteng’s nearly R2 billion to Mpumalanga’s R55 million, misallocated funds varied widely across regions, highlighting systemic issues requiring urgent attention.

Factors Contributing to Misallocation

Prior to 2021, flawed processes permitted students registered at multiple institutions to receive funds for each enrollment. This oversight led to duplicate funding and financial strain on the NSFAS budget. Despite attempts to rectify the situation, some institutions resist repaying misallocated funds, exacerbating the issue.

Institutional Challenges and Pushbacks

The SIU encountered resistance from institutions reluctant to reimburse NSFAS for misallocated funds. Some claim NSFAS owes them money, creating a deadlock in rectifying financial discrepancies. This reluctance prolongs the resolution process and impedes the recovery of misused funds.

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Addressing Systemic Flaws

Efforts to prevent future misallocation include system revisions and enhanced verification processes. Changes now suspend funds until student registrations are verified, reducing the risk of duplicate funding. Additionally, disclosure requirements aim to prevent over-awarding by considering household income thresholds.

Investigative Authority of the SIU

Proclamation R88 grants the SIU the mandate to investigate maladministration and improper conduct within NSFAS. Empowered by this proclamation, the SIU delves into allegations of financial mismanagement, ensuring accountability and transparency in the management of public funds.


The revelations of NSFAS’s misallocation underscore the critical need for stringent oversight and transparency in financial aid distribution. Through ongoing investigations and procedural reforms, it is imperative to safeguard funds meant for deserving students, ensuring equitable access to higher education for all.

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