NSFAS and the SIU Report Delay on Motheo TVET College Totalling R44 Million. The National Student Financial Aid Scheme (NSFAS), South Africa’s primary student funding body, is facing sharp criticism for allegedly withholding a critical Special Investigating Unit (SIU) report.
This report, focused on Motheo TVET College in the Free State, reveals damning evidence of financial mismanagement, with missing funds reportedly totalling R44 million. While the SIU completed its investigation, NSFAS has yet to hand over the findings to the Department of Higher Education and Training (DHET), raising questions about accountability and governance within the TVET system.
What Triggered the SIU Investigation?
The SIU launched an in-depth investigation into Motheo TVET College after discovering irregularities in the way the institution handled NSFAS bursary allocations. Typically, when a student is approved for funding, NSFAS releases the funds directly to their chosen institution. However, if a student decides not to register, either due to acceptance at another institution or taking a gap year, these funds must be returned to NSFAS as unallocated funds.
SIU Findings: Millions Unaccounted for Since 2017
The SIU uncovered that since 2017, Motheo TVET College had been withholding unallocated NSFAS funds, totalling more than R38.6 million. Despite acknowledging the debt in 2022, the college has failed to repay the amount. With accumulated interest, the total now stands at a staggering R44 million.
| Year Range | Missing NSFAS Funds | Acknowledged Debt | Interest Accumulated | Total Owed |
|---|---|---|---|---|
| 2017–2022 | R38.6 million | Yes (2022) | R5.4 million approx. | R44 million |
These funds were meant to support disadvantaged students pursuing vocational education and training. Their mismanagement directly undermines access to education for thousands of youth in the Free State and beyond.
Why Has There Been No Action?
A pressing question remains unanswered: Why have there been no consequences for Motheo’s Principal, Dipeloane Phutsisi?
When asked, the Department of Higher Education and Training (DHET) pointed fingers back at NSFAS. According to DHET spokesperson Camagwini Mavovana, the SIU reports must first be submitted to NSFAS, who then forwards them to the department as part of a “close-out process.”
“To date, NSFAS has not forwarded such a report to the department as yet. The department will only be able to take necessary steps once the report has been presented to the DHET,” said Mavovana.
This bureaucratic delay highlights systemic inefficiencies and a potential attempt to shield those implicated in financial wrongdoing from immediate repercussions.
Ethical Collapse at Motheo TVET College
Thato Mokatsane, coordinator for the Free State EFF Youth Command, condemned the leadership of Principal Phutsisi, calling the institution a “financial and ethical quagmire.”
“There have been many challenges emanating from chaos and mismanagement of funds at Motheo TVET College under the leadership of Ms Phutsisi. She and her executive management have failed to put the interests of the students at the college first,” said Mokatsane.
He further urged the DHET to suspend Phutsisi and her executive team pending the outcome of a full investigation into financial mismanagement. He warned against tolerating what he termed “directionless leadership,” which holds the institution and its students hostage.
DHET’s Response
Despite public pressure, the Department of Higher Education maintains that it cannot act until NSFAS submits the SIU report. This has fueled frustrations among students, political activists, and education stakeholders who believe that delays in accountability harm the credibility of public education institutions.
The DHET’s inability to act without NSFAS’s input underscores the lack of alignment and urgency between government departments in resolving serious issues of financial misconduct.
Calls for Urgent Action Students Must Come First
Stakeholders and student bodies across South Africa are demanding transparency and accountability. With R44 million of NSFAS bursary funds in limbo, thousands of deserving students could be left out in the cold.
It’s not just about recovering the money, it’s about restoring trust in the TVET college system and ensuring that education funds serve their rightful beneficiaries.
| Stakeholder | Role | Status | Responsibility |
|---|---|---|---|
| NSFAS | Student funding body | Failed to submit SIU report | Must release findings to DHET |
| SIU | Investigating corruption | Completed report | Found Motheo guilty of withholding R44m |
| DHET | Regulatory department | Awaiting report | Can only act once report is received |
| Motheo TVET College | Institution under investigation | Acknowledged debt | Yet to repay R44m |
| Principal Dipeloane Phutsisi | Head of institution | Still in position | Under fire for financial mismanagement |
Conclusion
The ongoing scandal involving NSFAS, SIU, and Motheo TVET College is more than just a financial dispute—it is a crisis of leadership and governance. While R44 million in bursary funding remains unreturned, students across South Africa suffer from a lack of access, poor facilities, and administrative chaos.
