More than 40 000 students across 76 higher education institutions received improper funding from the National Student Financial Aid Scheme (NSFAS) worth R5.1-billion, according to a damning Public Protector report.
The findings stem from a Special Investigating Unit (SIU) probe launched under Proclamation R88 of 2022.
Authorities have already recovered more than R2-billion of the misspent funds.
Portfolio Committee on Higher Education and Training chairperson Tebogo Letsie called the scale of the NSFAS misfunding “astronomical”, warning that officials cannot dismiss it as a routine administrative slip-up.
He said students, particularly those from poor and vulnerable households, should never have to bear the consequences of governance failures at an institution created to support their education.
Public Protector exposes R5.1bn in improper NSFAS funding
Letsie urged the newly restored NSFAS Board to act urgently to strengthen internal systems and accountability measures.
The committee has 30 days to process the Public Protector’s report and secure Parliament’s approval before submitting a formal response.
The latest findings add to a growing list of NSFAS governance concerns.
This is not the first time NSFAS has come under scrutiny this year.
In January, an audit of the 2024/25 financial year revealed that “more than 800 deceased beneficiaries were still receiving payouts” (NSFAS fraud probe: 822 ‘ghost’ beneficiaries).
The audit also identified thousands of students whose household incomes exceeded eligibility thresholds, as well as multiple cases of double-dipping with Social Relief of Distress (SRD) grants.
NSFAS administration faces fresh questions over spending
The new revelations also come weeks after the Democratic Alliance called for forensic scrutiny of NSFAS administration spending.
The party cited allegations involving luxury accommodation, apparent double-booking and excessive travel expenditure.
Democratic Alliance (DA) higher education spokesperson Delmaine Christians said the claims emerged just days after Treasury rejected a proposed R11-million remuneration package for the NSFAS Administrator.
Christians called for access to every invoice, approval and travel authorisation linked to the spending.
SIU investigation targets NSFAS financial mismanagement
The SIU’s broader investigation into NSFAS examines both financial mismanagement and the allocation of loans and bursaries to students. It covers conduct dating back to April 2016.
The investigation forms part of a wider effort to recover state losses linked to corruption and negligence at the entity.
NSFAS funding for 2026 puts administration under pressure
The scandal comes as NSFAS works to stabilise its core function: getting financial support to students who need it.
The scheme recently “finalised funding for a record 1 026 091 students for the 2026 academic year” (NSFAS 2026 funding: 1 million students approved), even as questions mount over whether the current administrative model can manage such large sums responsibly.
Also Read: NSFAS payment delays leave students homeless during exams as evictions surge nationwide
