Loan system “glitch” overpays students R503 million — one in court for theft

A glitch in the National Student Financial Aid Scheme’s (NSFAS) systems is to blame for the R14 million overpayment to a student at the Walter Sisulu University, according to a Sunday Times report.

Findings from the auditing firm Kuhumelela found the scheme’s systems were “significantly flawed” and had paid students over R503 million more than what was specified in loan agreements.

Kuhumelela was contracted by a ministerial committee appointed by Blade Nzimande to determine why NSFAS had failed.

Sibongile Mani, the recipient of a R14 million overpayment, was charged with theft after she allegedly spent around R820,000 of the R14 million deposited in her account in 73 days.

The findings in Mani’s case were meant to be handed down this week in the East London Regional Court, but have been postponed until 7 February 2022, due to the magistrate falling ill.

The money was transferred to Mani by Intellimali, a Cape Town company contracted by Walter Sisulu University to pay money to students. Mani was only meant to receive a monthly meal allowance of R1,400.

Intellimali told the court that the transfer is believed to have been caused by a technical glitch in its sBux system, which has since been scrapped.

The scheme was placed under administration in 2018. Former minister of higher education Naledi Pandor appointed Randall Carolissen as the administrator for a year. Nzimande extended his tenure to December 2020.

Carolissen’s administration of NSFAS was beleaguered by accusations of irregular appointments, City Press reported last year.

According to Kuhumelela’s report, Carolissen commissioned a forensic investigation. Abnormalities found during the investigation were passed on to the police crime intelligence unit.

Kuhumelela stated there was “limited oversight” regarding payments.

“What is concerning is that the organisation had a workforce of 436 employees at the end of 2019 … however the human capital was not able to ensure that the controls were implemented,” it said.

“Consultancy services were provided and payment made to the consultants without a signed contract to regulate the work of the consultant.”

Kuhumelela also raised the fact that the system has made payments to deceased students.

“NSFAS granted a bursary during 2019 to a student who died in 2017, according to the department of home affairs,” it stated.

The internal audit conducted by Kuhumelela showed that the student had accessed the myNsfas platform nine times.

“This shows the NSFAS system is open to fraud. It should investigate linking to home affairs records not only to confirm parents, but the status of the individual.”

NSFAS told the Sunday Times it would be inappropriate to comment on a report prepared specifically for the minister.

The higher education department said the report would be released to the public after Nzimande had considered it.

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