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

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.

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.

The unit said it had noted NSFAS’ announcement earlier this month that it would implement the SIU’s recommendations by introducing a new framework that includes a data-driven reporting process to ensure timely payments to service providers.

“This framework will improve accountability by generating monthly occupancy and payment reports. NSFAS also stated that it is considering an in-house payment functionality to streamline financial management and eliminate the middleman,” the SIU said.

The SIU commended NSFAS for strengthening its systems and improving governance.

The SIU called on unqualified NSFAS beneficiaries who have not yet come forward to make arrangements for repayment.

NPA head of communications Bulelwa Makeke said: “The NPA confirms that it has received referrals from the Special Investigating Unit (SIU) relating to cases involving unqualified NSFAS beneficiaries, including matters where acknowledgements of debt have been signed.”

However, she said more than 300 matters had been referred back to the SIU for outstanding investigations.

In determining whether conduct constitutes fraud, the NPA considers whether the available evidence meets the elements of the offence, including misrepresentation, intent, unlawfulness and prejudice, whether actual or potential.

“Each matter will be assessed on its own merits. The signing of an acknowledgement of debt does not in itself exclude criminal prosecution,” Makeke said.

“While such acknowledgements may be taken into account as part of the broader factual matrix, particularly as a mitigating factor during sentencing, they do not nullify potential criminal liability where evidence suggests intentional misrepresentation.”

She said decisions to prosecute are guided by admissible evidence and the public interest.

“The matters referred are at various stages of investigation,” Makeke said.

She added that some matters contain evidence that does not yet meet admissibility requirements for court proceedings.

“Consequently, the DPCI ( the Directorate for Priority Crime Investigation(DPCI), commonly known as the Hawks) is required to open dockets and conduct further investigations. Further details will be communicated as matters are enrolled in court, where appropriate.”

“The NPA reiterates its commitment to acting without fear, favour or prejudice in the prosecution of crimes involving the misuse of public funds,” she said.

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