Higher Education, Science and Innovation Minister, Professor Blade Nzimande, has announced the appointment of Professor Lourens Van Staden as acting Chairperson of the National Student Financial Aid Scheme (NSFAS) with immediate effect.
This after NSFAS Board Chairperson, Ernest Khosa, voluntarily tabled a notice of 30 days leave of absence for the organisation to deal with allegations against him as contained in the recordings distributed by the Organisation Undoing Tax Abuse (OUTA).
The OUTA is accusing both Khosa and the Minister of defrauding the scheme through kickbacks from service providers.
Van Staden is the former Vice Chancellor of the Tshwane University of Technology (TUT).
“I have already had a briefing session with him emphasising the importance of NSFAS to prioritise readiness for the beginning of the 2024 academic year. The acting Chairperson will also prioritise the employment of a new CEO and fully implement the Werksmans report that was commissioned by NSFAS,” Nzimande said on Sunday.
Last year, the NSFAS Board appointed law firm Werksmans Attorneys and advocate Tembeka Ngcukaitobi to probe claims of irregularities involving a tender awarded to four firms to pay allowances to students.
The investigation follows allegations against the now-axed NSFAS CEO, Andile Nongogo, relating to his conflict of interest in the appointment of service providers.
According to the findings, Nongogo actively participated in the presentation to the Bid Evaluation Committee (BEC) of proposals by service providers.
The probe also found he violated the public procurement processes of NSFAS, which he was employed to safeguard and uphold and has since been fired.
Labour court decision and report
In addition, last week, the Board of the NSFAS welcomed the Labour Court’s decision to declare the termination of the contract of employment of Nongogo as lawful and valid.
“The NSFAS Board further welcomes the decision by the Court to dismiss with costs the application by Mr Nongogo to strike out certain paragraphs as contained in the Werksmans Attorney’s report, which implicates him of irregular conduct concerning the appointment of direct payment service providers.
“The decision by the court vindicates the NSFAS Board in terminating Mr Nongogo’s contract of employment following his irregular involvement in the appointment of the direct payment service providers.”
The financial aid scheme said it views the report as a necessary and important measure to push “NSFAS to a much more elevated level of consciousness to fight corruption and the capture of NSFAS by some unscrupulous people masquerading as business people”.
In addition, NSFAS believes that the document also serves as a measure for NSFAS to further strengthen its own internal supply chain management systems and controls.
“Following this groundbreaking judgement, NSFAS will vigorously continue with its legal process towards the termination of contracts of direct payment service providers.”
The implicated firms include Tenet Technologies, Coinvest, eZaga Holdings and Norraco Corporation.
“The termination of the direct payment service providers will be handled with due care not to disrupt the disbursement of the allowances to students in the 2024 academic year.
“NSFAS will now focus all its efforts towards its immediate task of preparation for the seamless beginning of the 2024 academic year.” – SAnews.gov.za
