POLITICS

SIU authorised to investigate NSFAS

Unit will look into maladministration in relation to two functions of the organisation

Special Investigating Unit on authorisation to investigate National Student Financial Aid Scheme (NSFAS)

29 August 2022

President Cyril Ramaphosa has authorised the SIU to investigate allegations of corruption and maladministration in the affairs of NSFAS, and to recover any financial losses suffered by the State through corruption and negligence under Proclamation R.88 of 2022.

The SIU will launch an investigation that will probe maladministration at NSFAS in relation to two functions of the organisation. The first part will look into the management of NSFAS’s finances. The second part will investigate the allocation of loans, bursaries and any other funding payable to students in terms of the provisions of the National Student Financial Aid Scheme Act, 1999, Act No. 56 of 1999.

Furthermore, the SIU will also investigate related unauthorised, irregular or fruitless and wasteful expenditure incurred by the NSFAS or the State, including the causes of maladministration.

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.

The proclamation covers allegations of unlawful and improper conduct that took place between 1 April 2016 and 26 August 2022, the date of the publication of the Proclamation, or before 1 April 2016 and after the date of this Proclamation that are relevant to, connected with, incidental to the matters or involve the same persons, entities or contracts investigated.

The SIU is empowered to institute civil action in the High Court or a Special Tribunal in its name, to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud or maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority (NPA) for further action.

Issued by Kaizer Kganyago, SIU, 29 August 2022