Amidst allegations directed towards the Chief Executive Officer (CEO) of the National Student Financial Aid Scheme (NSFAS), the Board has launched a comprehensive investigation into the matter.
These allegations pertain to the CEO's prior association with the Services Sector Education and Training Authority (Services Seta) and possible misconduct linked to contract allocation at NSFAS.
In an official statement released on August 16, NSFAS clarified that the decision to suspend Chief Executive Officer (CEO) Andile Nongogo was prompted by concerns originating from his tenure at Services Seta and the potential impact on practices within NSFAS, particularly regarding the contract bidding process.
Over the weekend of August 14, media reports highlighted that one of the contracted companies responsible for disbursing student allowances, Coinvest, is led by a director who was involved in awarding a significant R29-million tender at Services Seta during Nongogo's time as CEO.
"While the primary allegations stem from actions in a different organization, the NSFAS board acknowledges the severity of the situation. Managing a budget of nearly R50 billion to support individuals from disadvantaged and working-class backgrounds, NSFAS holds a crucial role in skill development and the overall economic advancement of the country," the statement declared.
"The Board's foremost concern is upholding public trust while fulfilling the mandate to assist needy students. To ensure transparent governance and safeguard the reputation of NSFAS, the Board has committed to a thorough investigation into the allegations, particularly focusing on the Direct Payment project," added NSFAS in the statement.
During the investigation, Nongogo will be on temporary leave. In his absence, Masile Ramorwesi, the Chief Financial Officer, will serve as the interim CEO.
Crucially, the Board emphasised that the investigation should not be misconstrued as a presumption of guilt against the CEO. Instead, it signifies an unbiased endeavour to validate the allegations' accuracy and uphold the organisation's integrity.
Ernest Khosa, Chair of the NSFAS Board, reiterated the board's dedication to transformation and ethical governance within the organization. He emphasized that actions impeding the organisation's core mission of aiding underprivileged students will be addressed firmly.
The rollout of the NSFAS direct payment method, introduced at universities this year, has encountered criticism from students who view it as ineffective. Protests have erupted at various universities due to delayed allowances and high charges, resulting in disruptions, some escalating to violence.
Contracts were awarded to four Fintech companies – Coinvest, eZaga, Tenet Technologies, and Norraco – to disburse allowances to students across the nation's 26 public universities. This direct payment system was initially tested at 50 public technical and vocational education and training colleges in 2022.
Through this investigation, the NSFAS board aims to uphold its commitment to transparent governance and serve the best interests of disadvantaged students.
Ishmael Mnisi, Spokesperson for Minister Blade Nzimande, stated on Wednesday night that the minister had acknowledged the board's decision to place Nongogo on leave while investigating allegations concerning the appointment of service providers for managing the direct payment solution on behalf of NSFAS.
In the meantime, Nzimande has granted the NSFAS board until August 30 to provide a plan to address and rectify the challenges associated with the direct payment system for allowances.
