NSFAS administrator Dr Randall Carollisen said the financial aid scheme is declaring cumulative irregular expenditure of R7.5bn after reviewing data sets from prior years.
He said the primary contributors of the R7.5bn are R1.2bn disbursement in excess of contracts amounts. With implementation of the student-centred model, students are only requested to sign once for the duration of the qualification.
“The amounts reflected on a number of these contracts were generated incorrectly by the system in the prior year’s audit qualification and at the time the scheme could not adequately quantity the extent of disbursement in excess of contractual amounts,” Carollisen said. Another contributing factor is the R2bn shifting and use of earmarked historic debt funds . According to Carollisen, in the prior year the auditor-general found that NSFAS had utilised funds earmarked for historic debt without obtaining appropriate approval from National Treasury. And lastly, the R4.3bn disbursement with respect to non-compliance with laws and regulations which was due to the lack of controls over the entire disbursement value chain.
Carollisen said the scheme is investigating the root cause of these contraventions and will take appropriate steps in terms of the National Treasury Frameworks on irregular expenditure.
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