SIU flags R320m in dormant NSFAS Celbux accounts

A South African financial watchdog has uncovered an estimated R320 million in dormant National Student Financial Aid Scheme (NSFAS) Celbux accounts, set aside for student support. The Special Investigating Unit (SIU) revealed this disturbing discovery while presenting findings to Parliament’s Standing Committee on Higher Education.

These dormant accounts, dating back to 2018, were created under the now-discontinued Celbux voucher payment system. The SIU expressed concerns over some higher education institutions refusing to repay the money, claiming they are owed for previous academic years. The SIU's investigation into dysfunction within the higher education portfolio, spanning from 2017 to 2025, has led to eight findings, with six still ongoing.

One significant issue highlighted is NSFAS's direct payment system, which has been deemed unconstitutional by the Western Cape High Court. The court ruled that while the procurement process was flawed, the appointed service providers were not involved in maladministration or corruption. The SIU also discovered numerous "dormant" Celbux accounts, amounting to an estimated R320 million.

Despite most institutions being aware of their credit balances and willing to repay, some institutions have refused to do so, citing outstanding academic year debts. This situation follows NSFAS's estimated R10.4 billion in outstanding fees owed to higher education institutions. The SIU recommends that institutions should repay the credit balances, including any earned interest.

The SIU's findings reveal improper funding of over 40,000 students at an estimated cost of R5.1 billion, underscoring systemic failures in the student funding system. The South African Union of Students (SAUS) spokesperson, Dr Thato Masekoa, emphasized that these issues represent governance, accountability, and integrity problems that cannot be treated as mere accounting issues.