NPA probes 1 055 parents linked to R126 million NSFAS funding fraud

The National Prosecuting Authority NPA is considering criminal prosecution against more than 1 000 parents and students who fraudulently obtained NSFAS funding, despite signing acknowledgements of debt to repay R126 million. The National Prosecuting Authority (NPA) is gearing up for a major crackdown on fraud, as it considers criminal charges against over 1,000 parents and students who deceitfully secured funding from the National Student Financial Aid Scheme (NSFAS), despite signing acknowledgements of debt to repay R126 million. This forms part of a larger R2 billion recovery by the SIU from universities and unqualified beneficiaries.

The NPA confirmed it had received referrals from the Special Investigating Unit (SIU) following the recovery of more than R126 million from parents and unqualified NSFAS beneficiaries for possible prosecution. The SIU recently announced it had recovered R126,478,184.64 from 1 055 parents and unqualified beneficiaries who received NSFAS funding despite not qualifying. These individuals signed acknowledgements of debt (AoDs), agreeing to repay the funds over time.

The recovery forms part of more than R2 billion the SIU has recouped to date from institutions of higher learning and unqualified former NSFAS beneficiaries. Of this amount, R1.7 billion was returned by universities, TVET colleges and students who did not qualify for funding. In a media release, the SIU said the recovery coincided with the start of the 2026 academic year, as students registered at higher education institutions across the country.

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The funds relate to unallocated NSFAS money from 2016 to 2021. “These unallocated funds represent financial resources that were designated for students who qualified for funding but later changed institutions or deregistered,” the SIU said. Institutions are permitted to retain such funds for one year.

However, in these cases, the money was held for longer periods. “The existence of unallocated funds can be attributed to inadequate control systems and a lack of reconciliation processes implemented by NSFAS during that period, resulting in a failure to recover these funds from institutions of higher learning,” the SIU said.

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