SIU Recovers R1.7 Billion for NSFAS: Boost to Student Funding from Unspent Aid at Universities and TVETs

The Significance of the SIU's Major Recovery in South African Higher Education

The Special Investigating Unit (SIU), South Africa's premier body tasked with probing corruption and maladministration in state affairs, has achieved a landmark recovery of R1.7 billion returned directly to the National Student Financial Aid Scheme (NSFAS). This substantial sum, part of a broader R2 billion clawed back, originates from unspent or unallocated NSFAS funds lingering at public universities and Technical and Vocational Education and Training (TVET) colleges since 2016. 79 78 As the 2026 academic year kicks off with students registering across the country, this infusion promises enhanced support for tuition, accommodation, and living allowances, directly bolstering access to higher education for underprivileged youth.

NSFAS, established in 1991 as a government initiative to democratize post-school education, funds over a million students annually at South Africa's 26 public universities and 50 TVET colleges. The recovery addresses systemic inefficiencies where allocated funds for eligible students—who later deregistered or transferred—were not returned promptly, sitting idle due to flawed reconciliation processes. 80 This development not only recycles vital resources but also underscores ongoing reforms to prevent future leakages.

Unpacking Unspent NSFAS Funds: How They Built Up Over Years

Unspent NSFAS funds typically arise when bursaries are disbursed to institutions for approved students who, for various reasons, do not take up their places. These include changing to another institution, failing to register, or personal circumstances leading to deregistration. Per NSFAS guidelines, institutions may retain such funds for one academic year to allow for reallocation, after which they must refund the balance to NSFAS. However, between 2016 and 2021, inadequate oversight—such as missing monthly reconciliation reports and weak data controls—allowed billions to remain unclaimed at universities and TVETs. 79

This issue highlights broader challenges in South Africa's higher education funding ecosystem. TVET colleges, designed to provide practical skills training aligned with industry needs, and universities offering degree programs, both rely heavily on NSFAS to fill enrollment gaps from disadvantaged communities. The SIU's probe, authorized under Proclamation R88 of 2022, systematically audited these accounts, securing acknowledgments of debt and direct payments. 78

NSFAS Explained: Backbone of Affordable Higher Education in SA

The National Student Financial Aid Scheme (NSFAS) operates as a centralized bursary and loan program under the Department of Higher Education and Training (DHET). Initially loan-based for poor matriculants, it evolved into full bursaries post-2018 Fees Must Fall protests, covering 'missing middle' households earning up to R350,000 annually. In 2025 alone, NSFAS approved funding for over one million students, disbursing R45 billion+ across tuition, books, and allowances. 74

Funding flows directly from NSFAS to institutions, bypassing students to curb fraud. Yet, this model exposed vulnerabilities, as seen in the unspent funds saga. For universities like the University of the Witwatersrand (Wits) and TVETs like Majuba, timely refunds are crucial to cycle money back for new cohorts, especially amid rising demand—over 500,000 eligible students face barriers yearly due to funding shortfalls.

The SIU's Investigative Process: From Probe to Payout

Empowered by the Special Investigating Units Act of 1996, the SIU launched its NSFAS inquiry following presidential proclamation. Investigators forensically traced allocations from 2016-2021, identifying over R2 billion in idle funds. Institutions cooperated via settlements, with major payouts like Wits' R450 million and University of Free State (UFS)'s R438 million plus R70 million follow-up. 79

• Step 1: Data audits of NSFAS ledgers against institutional records.
• Step 2: Engagement with vice-chancellors and principals for voluntary disclosures.
• Step 3: Securing acknowledgments of debt (AoDs) for phased repayments.
• Step 4: Referral of criminal leads to the National Prosecuting Authority (NPA).

SIU spokesperson Kaizer Kganyago emphasized, "These recoveries ensure taxpayer money reaches deserving students." Concurrently, R126 million was reclaimed from 1,055 unqualified beneficiaries via parent-signed AoDs. 67

Comprehensive Breakdown of Recovered Funds by Institution

Here is the detailed tally of cash recoveries channeled back to NSFAS, showcasing accountability across key players:

Total institutional recoveries contribute to the R2 billion milestone.SIU official breakdown 79

Direct Benefits for Students at Universities and TVETs

This R1.7 billion boost could fund thousands more places. For context, average NSFAS bursary at universities is R80,000-R120,000 per year, covering fees and allowances. TVET students receive around R60,000. Recovered funds prioritize 2026 intakes, easing registration backlogs amid appeals surges. 80

Stakeholders like student unions hail it as a win against inequality. Rural universities such as Fort Hare and Zululand, serving black townships, stand to gain disproportionately, enhancing graduation rates hovering at 20-30% nationally.

Institutional Reforms and University Responses

Universities like UFS and Wits promptly settled, implementing internal audits. TVETs, often under-resourced, pledged better tracking. NSFAS responds with SIU-backed reforms:

• Data-driven monthly occupancy reports.
• In-house payment systems to cut intermediaries.
• Automated reconciliation dashboards.

These steps aim to slash unspent rates below 5%.Government statement 78 For professionals eyeing university jobs in administration, such changes signal robust governance careers.

Government Perspectives and Ministerial Welcome

Higher Education Minister Buti Manamela welcomed the recovery, noting it aligns with DHET's push for equitable access. Parliament's Higher Education Committee commended SIU, urging faster NPA referrals for any graft. 33 Amid 2026 challenges like R14 billion shortfalls and accommodation glitches, this provides timely relief.

Persistent Challenges in NSFAS and Higher Ed Funding

Despite progress, hurdles remain: exploding demand (1.5 million applicants vs. 1 million funded), fraud in appeals, and vendor payment delays disrupting campuses. 2026 sees stricter eligibility, potentially excluding some 'missing middle'. Solutions include public-private partnerships and diversified bursaries.

Explore higher ed career advice for navigating these dynamics as faculty or admin.

Future Outlook: Sustainable Student Funding in SA

With reforms embedded, NSFAS eyes R50 billion+ budgets by 2028, prioritizing STEM at TVETs and research at universities. SIU's model could extend to other schemes. Students, check status via scholarships pages; educators, browse higher ed jobs in South Africa.

Career Opportunities Amid Funding Reforms

This shake-up opens roles in compliance and finance at institutions. From lecturer positions to admin, platforms like AcademicJobs connect talent with lecturer jobs and professor jobs.