Investigation Into Tender for NSFAS Payment Service Provider by Public Protector
The Public Protector’s office is currently conducting an investigation into the contract awarded by the National Student Financial Aid Scheme (NSFAS) to various service providers. This contract involves facilitating direct payments to students in universities and technical vocational education and training colleges. The investigation was initiated by the Stellenbosch University students’ representative council (SRC), who raised concerns about the contract.
Involvement of Specific Companies
The SRC expressed concerns about four companies involved in the contract: eZaga, Coinvest Africa, Tenet Technology, and Norraco Corporation. The Public Protector’s office is actively engaged in the investigation and has made notable progress so far.
Legal Constraints on Disclosure
The Public Protector Act imposes restrictions on the disclosure of information regarding investigations. This means that individuals are prohibited from sharing the contents of any documents or evidence provided during the investigation.
Insight from a Third-Party Investigation
An investigation report conducted by the Organisation Undoing Tax Abuse (Outa) has shed light on the four companies involved in the contract. The report reveals that these companies are not registered as financial service providers and have limited evidence of experience as fintech companies. These findings raise concerns about their suitability for the contracted role.
Legal Conflict Surrounding Tenet Technology
TENET South Africa, a separate entity, has taken legal action against Tenet Technology due to the unauthorized use of its name and trademarks. This has led to a legal dispute in the Western Cape High Court.
Interim Settlement and Deferred Resolution
An interim out-of-court settlement has been reached to resolve the legal conflict between TENET South Africa, Tenet Technology (Pty) Ltd, and Coralite (Pty) Ltd, which owns the domain hosting Tenet Technology’s website. The main application has been deferred until February 2024, reflecting a temporary resolution to certain aspects of the legal proceedings.
Conclusion
The ongoing investigation by the Public Protector’s office into the contract awarded by NSFAS to service providers is of significant importance and involves legal complexity. The legal conflict between TENET South Africa and Tenet Technology further adds to the complexity of the situation.
