Higher Education Minister Blade Nzimande and the National Student Financial Aid Scheme (NSFAS) Ernest Khosa face mounting calls to resign amid corruption allegations.
Higher Education Minister Blade Nzimande and the National Student Financial Aid Scheme (NSFAS) top brass face mounting calls to resign amid corruption allegations.
The Organisation Undoing Tax Abuse (Outa) yet again issued damning allegations, this time against Nzimande and NSFAS board chairperson Ernest Khosa, claiming they were allegedly paid millions in kickbacks as well as at least R1 million to the South African Communist Party (SACP) by service providers.
Outa claimed this was done in return for tenders, protection for service providers, and the evidence was in voice-recorded meetings.
Four service providers Coinvest Africa, Tenet Technology, Ezaga Holdings and Norraco Corporation were contracted for five years for the direct payment of student allowance.
However, an investigation by Werkmans Attorney’s found certain procedures were not followed.
It also found there was an alleged conflict of interest in the appointments.
Nzimande and Khosa have since denied the allegations, with the former threatening to take legal action.
“Outa’s latest detailed investigative report and the voice recordings will be shared with authorities, including the Special Investigating Unit (SIU), Public Protector, SARS and the Auditor-General’s office.
“The voice recordings have already been shared with the SIU, which has been investigating corruption at NSFAS since 2022,” said Outa’s investigations manager Rudie Heyneke.
The recordings leaked by an alleged whistle-blower reportedly document two separate meetings that took place after the NSFAS board resolved in August 16, 2023 that former CEO Andile Nongogo was to be placed on special leave while a board-ordered investigation into his conduct was being undertaken.
Heyneke said it was unethical, highly irregular and against all the principles of good governance for the chairperson of the board to meet with service providers and request input on board decisions.
Nzimande rejected the allegations claiming they were largely based on gossip and intended to undermine a smooth start to the 2024 academic year.
In a statement issued by the ministry, he denied using money from any of the department’s entities for the purpose of funding the SACP.
“Furthermore, given the damaging allegations continued in this report the Minister reserves his right to take the necessary legal action. The Minister wishes to reaffirm his and the department’s commitment to clean governance within the department and its entities,” it said.
The SACP used the 29th year commemoration of Joe Slovo’s death on Saturday to also deny the allegations and insisted it never approached anyone seeking illegitimate funding.
Khosa also dismissed the allegations stating that at an appropriate time he would take the public into confidence.
“The NSFAS Board notes the fight back by some unscrupulous individuals and organisations who are determined to defocus NSFAS from implementing the Werksmans Attorneys report recommendations.
“It is also interesting to note that the OUTA statement coincides with the NSFAS Board decision to start with the legal proceedings to terminate the contracts of the direct payment solution service providers.”
Khosa said the board will continue to work with law enforcement agencies to further probe the recordings in circulation and all the reported instances of corruption and maladministration at the entity.
The South African Union of Students (SAUS) meanwhile expressed shock, saying any and all actions against the lives, freedoms and aspirations of the poor masses is treasonous.
“While we note and acknowledge that these allegations must be tested within competent courts of law, and their veracity is a competency of our legal authorities to establish.
“What has been evident for all to see is that the sector had been already facing crippling conditions, undermining the interests of the poor and working-class students.
“For the first time since the advent of the scheme, almost 100 000 students wrote their end-year examinations in 2023 on empty stomachs without food, toiletries, sanitary products, transport and some even accommodation,” Saus president Yandisa Ndzoyiya said.
They are now calling for President Cyril Ramaphosa to suspend Nzimande, the NSFAS board be dissolved and a caretaker board to be appointed while the allegations are being tested.
“Failure for the President to act in defense of the poor and working class, we will mobilise all progressive forces to agitate and demonstrate in the most radical manner our rejection and condemnation for the continued stay of Blade Nzimande and Ernest Khosa,” said Ndzoyiya.
ActionSA Youth Forum chairperson Hluphi Gafane said the revelation by OUTA was no surprise and demonstrated the reality that a network of “unscrupulous tenderpreneurs” and public office bearers prioritised filling their pockets.
Cape Times
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