National Student Financial Aid Scheme (NSFAS) has confirmed that the Walter Sisulu University (WSU) mistakenly deposited R14 million into a bank account of one of its students.
The student has apparently spent around R400 000 of the funds.
Walter Volker, the CEO of The Payments Association of South Africa tells host, Stephen Grootes that if money is deposited into an incorrect account, through an EFT credit it becomes the account holders, adding that the bank cannot unilaterally reverse the money.
What the bank can do is, if there was an error, they can then ask the account holder to reverse the funds voluntarily to the rightful owner otherwise the original owner may take legal recourse.— Walter Volker, CEO of The Payments Association of South Africa
We understand that this is money the university will need to account for says Kagiso Mamabolo, NSFAS Spokesperson. Mamabolo adds that they have since written to WSU management to account for this incident and how they will resolve the issue.
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This article first appeared on 702 : WSU makes costly mistake by depositing R14 million into a students account