The Special Investigating Unit (SIU) has signed an Acknowledgement of Debt agreement with the Motheo TVET College in the Free State, related to the SIU’s National Student Financial Aid Scheme (NSFAS) investigation.

The college has agreed to reimburse NSFAS approximately R38,686,477.10, which is unallocated funds from 2017 to 2022. The money remained in the institution's control for a year before it was scheduled to be returned to NSFAS.

“These unallocated funds were designated for students who were eligible for funding but either changed institutions or deregistered,” said SIU spokesperson Kaizer Kganyago.

Since the start of the inquiry, this is the first Acknowledgment of Debt (AoD) that the SIU has signed with a university. The SIU calls on other colleges and universities to step up and return unallocated cash owed to NSFAS.

More than R5 billion in NSFAS funding may have been given to students who didn't meet the criteria for funding, according to the SIU's preliminary investigation.

OFM News previously reported that President Cyril Ramaphosa authorised the SIU to investigate NSFAS and to recover any financial losses suffered by the state through corruption and negligence.

Over R421 million has been recovered by the SIU from academic institutions so far.

Motheo TVET College has agreed to a monthly instalment of R855,679.91 over a period of 60 months.

OFM News/Zenande Mpame