The Vaal University of Technology (VUT) said it’ll refund the National Student Financial Aid Scheme (NSFAS) Close-Out Project (COP) R123.3 million for the years 2017 to 2022.
The institution said the refund will be directed to the Special Investigating Unit (SIU) under Proclamation R.88 of 2022, which aims to address and recover financial anomalies within NSFAS.
In 2022, President Cyril Ramaphosa authorised the SIU to investigate allegations of corruption, fraud, and maladministration within NSFAS operations, as well as to recover financial losses incurred by the state.
The directive was part of broader terms of reference, which included the reconciliation of funding decisions, overpayments and underpayments to institutions, unfunded students, and instances of double-dipping and dropouts.
“Approximately 72% of VUT’s student population is funded by NSFAS, underscoring the importance of this reconciliation process to the university community.
In addition to the refund, NSFAS and VUT reached a consensus on addressing underpayments for the period 2017-2022.
This agreement will benefit 19 096 students, with a collective reduction in student debt amounting to R241,202,312.51,” read a statement from the institution.
In addition, VUT said for many of the implicated students, the underpayment meant they were allowed to register but were unable to obtain their graduation certificates due to outstanding balances.
“As part of this resolution, graduates from this cohort will now receive their certificates, enabling them to fully realise the value of their academic achievements and pursue opportunities aligned with their qualifications,” added the statement.
VUT said the process involved extensive data analysis and collaboration, to address outstanding reconciliation issues.
The process entailed reviewing individual student cases, analysing six years of remittances and registration data, and clarifying discrepancies in student allowances and funding allocations.
Following intensive efforts, VUT finalised and re-submitted data, with the final reconciliation concluded in November 2024 through collaborative sessions with NSFAS.
VUT’s Vice-Chancellor and Principal, Professor Khehla Ndlovu, welcomed the reconciliation, adding that it’s a sign that the institution is dedicated to upholding the highest standards of financial accountability and transparency.
“This refund reflects our commitment to ethical financial governance and responsible stewardship of public funds.
By proactively engaging with NSFAS and the SIU, VUT has demonstrated its dedication to transparency and accountability, aligning with our broader strategic institutional goals outlined in the ‘Making VUT Work’ initiative and Vision 2033+,” said Ndlovu.
