Question NW760 to the Minister of Higher Education, Science and Innovation
11 April 2024 - NW760
Pambo, Mr V to ask the Minister of Higher Education, Science and Innovation
In light of the fact that the Special Investigating Unit (SIU) has recovered close to R1 billion from institutions of higher learning that have either misused and/or misallocated funds from the National Student Financial Aid Scheme, what (a) steps has he taken to hold the specified institutions accountable for misused and/or misallocated funds and (b) intervention measures have been put in place to ensure that maladministration does not continue in institutions of higher learning?
Reply:
a) In terms of proclamation 88 of 2022, the SIU initiated investigations on potential misuse and/or misallocation of funds by the institutions. Once the SIU has concluded its report, the Department will study the report, and engage the NSFAS and institutions which are implicated by SIU before it takes any steps. The Department has in the interim asked universities to conclude outstanding financial reconciliations.
b) NSFAS is improving its internal controls and reconciliation processes to identify outstanding funds and recover or process payments due far sooner. The Department further monitors the performance reports of universities and conducts site visits, reviews audited financial statements and annual reports of the universities, and where substantial evidence or complaints on maladministration are reported to or detected by the Department, investigations are undertaken as per the empowering provisions of the Higher Education Act (1999).
Section 42 (1) of the Higher Education Act 101 of 1997, as amended, states that the Minister may issue a directive to the council of Public Higher Education Institution (PHEI) if the Minister has reasonable grounds to believe that the Council or the Management of the PHEIs, (a) is involved in financial impropriety or the PHEI is being otherwise managed’.
If Section 42 (1)(a) is not fulfilled, then the Minister may consider Section 42 (4), which states that “in the event that the Minister has reasonable grounds to believe that the council of the PHEI concerned has failed to comply with the directive contemplated in this section within the stated period, or the steps taken, fail to remedy the deficiency within a reasonable period of time, the Minister may, depending on the circumstances-
(a) appoint an independent assessor in accordance with section 44; or
(b) appoint an administrator in accordance with section 49B; or
(c) take any other appropriate action allowed by this Act or any other law”, as a form of intervention.