NSFAS ‘Sits on SIU Graft Report’ On Motheo TVET Totalling R44m
NSFAS Sits on SIU Graft Report On Motheo TVET Totalling R44m. The National Student Financial Aid Scheme (NSFAS) has come under renewed scrutiny following its failure to forward a damning SIU graft report on Motheo TVET College to the Department of Higher Education and Training (DHET). The report, which reveals financial mismanagement totalling R44 million, raises serious concerns about governance and accountability in South Africa’s TVET college system.
Background of the NSFAS-SIU Investigation
The Special Investigating Unit (SIU) launched a detailed probe into the financial operations at Motheo TVET College, located in the Free State province. The investigation focused on unallocated NSFAS bursary funds that had not been returned to the scheme.
In the current NSFAS system, once funding is approved for a student, the bursary amount is transferred directly to the student’s chosen institution. However, there are instances where the student does not register—either due to multiple admissions or a decision to take a gap year. In such cases, these unallocated bursary funds must be returned to NSFAS.
Despite this clear procedure, Motheo TVET College failed to comply. The SIU discovered missing funds dating as far back as 2017, amounting to R38.6 million, which the college acknowledged in 2022 but failed to repay. With accrued interest, the total debt stood at R44 million as of last month.
Summary of Key Findings
| Year | Amount Unaccounted (ZAR) | Acknowledged by Motheo | Repaid? | Current Debt (with interest) |
|---|---|---|---|---|
| 2017–2022 | R38.6 million | Yes (in 2022) | No | R44 million |
Lack of Accountability and Inaction
What has shocked observers and stakeholders alike is the lack of action following the SIU’s revelations. According to the Department of Higher Education and Training (DHET), no steps have been taken against Motheo TVET College’s principal, Ms. Dipeloane Phutsisi, because the NSFAS has yet to submit the SIU graft report.
“The investigation by the SIU is driven by NSFAS as part of the ‘close-out report’. As such, the investigation reports done by the SIU in all our institutions (universities and TVET colleges) are then presented to NSFAS. To date, NSFAS has not forwarded such a report to the department as yet,”
— DHET Spokesperson Camagwini Mavovana
This bureaucratic limbo has effectively shielded individuals responsible for potential misconduct from accountability. Until the NSFAS submits the findings, the DHET claims it cannot initiate disciplinary or legal action.
EFF Youth Command Raises Alarm
The Free State EFF Youth Command has not remained silent. Thato Mokatsane, the organisation’s provincial coordinator, voiced serious concerns about ongoing financial and administrative mismanagement under Phutsisi’s tenure.
“There have been many challenges emanating from chaos and mismanagement of funds at Motheo TVET College under the leadership of Ms Phutsisi,”
— Thato Mokatsane, EFF Youth Command Coordinator
Mokatsane accused Phutsisi of failing to prioritise student interests, running the institution with “directionless leadership”, and perpetuating a culture of impunity. He called for immediate suspension of Phutsisi and her executive team pending a full investigation.
Systemic Issues within NSFAS and TVET Colleges
The NSFAS SIU graft report does not exist in a vacuum. It exposes systemic weaknesses in the monitoring and accountability structures of South Africa’s public education funding and administration. The failure to reclaim unallocated funds not only points to internal inefficiencies but also potentially limits funding availability for new or current students.
This delay or failure in recovering funds also threatens public confidence in the scheme and raises questions about:
- Financial oversight mechanisms
- Internal audits within TVET colleges
- Consequences for poor institutional leadership
- The role and responsibility of NSFAS in compliance enforcement
In the case of Motheo TVET College, the R44 million that remains unpaid could have supported thousands of financially struggling students.
Where is the SIU Report Now?
One of the key controversies is the lack of transparency surrounding the SIU’s report. Despite concluding its investigation, the NSFAS has not forwarded the report to the DHET, making it difficult for any meaningful intervention or action to take place.
This raises a critical issue: Why is NSFAS withholding the report? Is it internal mismanagement, legal hesitation, or an attempt to protect certain individuals?
The Role of Principal Dipeloane Phutsisi
At the centre of the controversy is Ms. Dipeloane Phutsisi, the principal of Motheo TVET College. Despite repeated calls for her suspension, she continues to serve in her position. Critics accuse her of:
- Failing to account for unallocated funds
- Lack of financial leadership
- Ignoring student needs and interests
- Fostering a toxic, mismanaged environment
So far, neither NSFAS nor Phutsisi has responded publicly to the allegations, further deepening the mystery and outrage.
Implications for Students and Stakeholders
The ongoing delay in addressing the NSFAS SIU graft report and the unresolved R44 million debt at Motheo TVET has direct implications for student funding, institutional integrity, and public trust. These funds could have helped:
- Students pay for tuition fees
- Cover accommodation and living costs
- Buy textbooks and learning materials
Instead, they remain in limbo—unused, unreturned, and unaccounted for.
What Needs to Happen Now
For justice and transparency to prevail, the following steps are urgently needed:
- Immediate submission of the SIU report by NSFAS to the DHET.
- Suspension and investigation of implicated officials, including Phutsisi.
- Recovery of unallocated funds, including accrued interest.
- Public disclosure of financial audits at Motheo and other TVET colleges.
- Stronger compliance mechanisms across NSFAS-funded institutions.
The public, especially the youth depending on bursaries, deserves clarity, justice, and accountability.
Conclusion
The failure of NSFAS to act on the SIU graft report concerning Motheo TVET College represents a serious breach of public trust. The unreturned R44 million, mismanagement under Dipeloane Phutsisi, and the lack of action from relevant departments demand urgent intervention. This issue is not just about a number—it’s about lost opportunities for students, compromised education futures, and weakened public systems.
