Durban - The Special Investigating Unit has recovered over R33 million from the Northlink College in the Western Cape.
The SIU said this is part of its National Student Financial Aid Scheme investigations.
"This is the first actual recovery of government money since the signing of Proclamation R88 of 2022 in August," the Unit said.
The SIU said the technical and vocational education and training college received funding from the NSFAS for students between 2017 and 2021 and invested it without authorisation.
The funds were meant to be allocated to students between the four years, but the college approached the SIU and admitted R33m it received from NSFAS was not allocated to students and it had instead invested it without authorisation.
“The TVET college stated to the SIU that it is fully aware that the funds should have been returned to the NSFAS, but Northlink College has failed to do so, and instead decided to invest the funds and would return the funds on request from NSFAS,” said SIU spokesperson Kaizer Kganyago.
Kganyago said they were still calculating the amount of interest earned from the investment from the commencement date, and such interest would have to be paid into the SIU Trust account.
The SIU is mandated to investigate corruption and maladministration in the affairs of NSFAS and to recover financial losses suffered by the State through negligence and corruption.
"The SIU investigation focuses on maladministration at NSFAS regarding 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," he said.
Kganyago added that it is also investigating related unauthorised, irregular or fruitless and wasteful expenditure incurred by the NSFAS or the State, including the causes of maladministration.
IOL recently reported that the SIU and the Asset Forfeiture Unit obtained a preservation order against former Eskom manager Duduzile Moyo and her husband, Mmoloki, their trust, a business and two children.
In September, the Special Tribunal granted an order allowing the SIU to freeze Moyo’s pension fund after she resigned amid allegations she siphoned almost R25m through contract fraud at the power utility.
Before that, the North Gauteng High Court granted the NPA a preservation order to seize items valued at over R25m amid a probe into financial mismanagement and corruption at the National Lotteries Commission.
SA actress Terry Pheto was one of the high profile names mentioned in the investigation.
The NPA said nine luxurious residential estates in Pretoria, Centurion, Hartbeespoort and Johannesburg, one BMW 420i convertible and two Ocean Basket franchises worth over R25m, were now under preservation.
IOL