An audit report reveals the State Educational Loan Fund has been plagued by violations and corruption since 1997 when it began granting loans to students pursuing Higher education abroad. The main finding of the investigation is that 90 percent of the loans were granted to high-level officials, their children, and those who had access to confidential information. There was no transparency or fair competition in the allocation of loans.

The South African Organisation Undoing Tax Abuse (OUTA) has uncovered “multimillion-rand tender corruption” at the National Student Financial Aid Scheme and has handed over all information to the Special Investigating Unit. OUTA said its revelations follow an investigation into corruption and irregular contracts at the Services Sector Education and Training Authority after a successful Promotion of Access to Information application relating to a ZAR170 million (US$9.6 million) tender for a biometric attendance monitoring system.

The Education department must explain why it let a student loan company that an audit had found improper millions of dollars. The loan company received the payments through a subsidy program that guaranteed a 9.5 percent interest rate on student loans. In an accord reached in January, the department allowed it to keep the $278 million it had received but suspended future payments of more than $800 million until a future audit could determine whether the company was eligible for the money.