Cape Town - Three employees from the National Student Financial Aid Scheme (NSFAS) were arrested on allegations of fraud at the Wynberg Office on Wednesday.
NSFAS Executive Administrator, Dr Randall Carolissen said the employees were all arrested on allegations of fraud relating to diverting student allowances to their personal accounts.
Carolissen said NSFAS is working with the authorities, who are investigating the matter.
"Since NSFAS was put under administration in August last year, as part of his Term of Reference the administrator instituted a number of forensic investigations relating to the general disbursement of student funds, student allowance, leakage of sensitive and confidential information and human resources related issues."
Carolissen said it has come to the attention of NSFAS that there are people who are misrepresenting themselves and "posing as NSFAS officials soliciting applicants to pay a sum of money in order to have their application processed or have access to application forms".