The Department of Higher Education has spent R2-million on a forensic investigation to establish what happened to R5 billion that went accounted for more than two years at the National Skills Fund (NSF).

According to Higher Education, Science, and Innovation Minister Blade Nzimande, a ministerial task team (MTT) was appointed to look at the functionality and operating model of the NSF.

The Auditor-General (AG) found much of a total amount of just under R5-billion could not be properly accounted for over two financial years by the NSF.

In response to IFP MP Sanele Sethembeni Zondo's written parliamentary question, Nzimande said the entity had serious problems.

"I was concerned even before I started the forensic investigation that there are serious capacity issues and operational deficiencies in the manner in which the NSF was operating. This has been underlined by the audit disclaimer that they got," he added.

In August last year, City Press reported the forensic investigation into the NSF would include lifestyle audits and financial standing probes of relevant officials at the entity and in the department.

It will also investigate whether there was any intention by officials at the NSF to conceal information from the AG.

In May 2021, Scopa directed a full-scale investigation into the financial affairs of the department’s entity after an audit outcome of the 2019/20 financial year revealed it could not account for R2.5-billion.

The NSF is an entity of the department that provides funding for skills development initiatives through bursaries, learnerships, scholarships and workplace-based learning programmes.

The poor audit outcomes of the entity and calls by Scopa for a forensic investigation led to the suspension of the department's director-general, Gwebinkundla Qonde.

As the director-general, Qonde is also the accounting authority at the NSF.

NSF executive officer Mvuyisi Macikama was also suspended.

Nzimande said the total cost of the forensic investigation services was just over R2 million.

"The MMT gave me, two weeks ago, an interim report on the progress that they are making and have agreed that by the end of June this year, they will give me a final report on the operations, strengths and weaknesses. This will determine all these issues asked on internal checks and balance control systems," he added.

Furthermore, Nzimande said there were "clearly serious weaknesses on internal checks and balances" of the NSF.

"The interim report has said as such but still need to do a complete analysis so that they come with very concrete proposals on how to strengthen this important entity such that it is able to do its work," he added.