The National Student Financial Aid Scheme (NSFAS) Board has been directed by Higher Education, Science and Innovation Minister Blade Nzimande to submit a comprehensive report with explanations to him within the next three weeks.
“This must inevitably include close monitoring of the very important service delivery aspects, which include the timeous payment of student allowances, as well as the continued accreditation of student accommodation,” said Nzimande.
This comes after a damning forensic report implicated the institution’s fired CEO, Andile Nongogo, in alleged corruption, fraud, and illegal tender dealing.
The investigation report by Werkmans Attorneys found Nongogo allegedly had a relationship with one of the companies appointed for the new NSFAS direct payment system.
It ultimately recommended that NSFAS subject all bid evaluation committee members who are still within its employ to a disciplinary inquiry for their failure and deliberate neglect of duty to conduct bid evaluations as prescribed in the 2021 SCM (Supply chain management) Policy.
Nzimande has now given instruction that the board's investigation must also produce answers to the process of issuing off-take agreements following recent allegations Nongogo had made in the media.
In light of recent accusations made by Nongogo in the media, Nzimande has now ordered that the board’s inquiry yield information regarding the off-take agreement issuance procedure as well.
He alleged lucrative agreements between companies that he claims were hand-picked by senior government officials and board chairperson Ernest Khosa.
Nongogo claimed that while he was suspended his electronic signature was used without his permission to issue student accommodation off-take, with 12 agreement letters being sent to potential service providers.
The fired CEO is currently fighting for his job. According to the minister, he has not responded to the October findings by Werksman attorneys.
Last week Nongogo approached the Labour Court in Braamfontein to file an urgent application.
There have been many requests that the NSFAS urgently address the student allowance payment issues as thousands of university students are without money following the cancellation of the tender to the four fintechs appointed to disburse payments to students.
In a statement, the entity said: “To date, a total of 314 365 university students have received payments, amounting to a sum of R511 182 438.
This included tuition payments totalling R1 602 289 873 allowances paid via institutions of R1 073 197 301.
“NSFAS is working closely with all institutions to implement the reforms brought on by the implementation of the direct payment solution.
“This will ensure that allowances are paid to students on time. Consultations with all institutions will also continue in preparation for the academic year 2024.”
Cape Times