Nzimande Claims NSFAS Leaked Recordings Are Just Gossip
The recent alleged corruption scandal involving kickbacks within the National Student Financial Aid Scheme (NSFAS) has caused significant controversy. Leaked recordings suggest that Higher Education Minister Blade Nzimande and NSFAS Board Chairperson Ernest Khosa received substantial kickbacks in connection to tenders awarded for paying NSFAS allowances. However, Minister Nzimande strongly denies these claims, dismissing them as baseless gossip aimed at disrupting the start of the 2024 academic year.
OUTA Reveals Alleged Kickback Scheme
Taking center stage in this scandal is the Organisation Undoing Tax Abuse (OUTA), which has released voice recordings from meetings between Khosa and a representative of a service provider. These recordings suggest that multimillion-dollar kickbacks were paid to Nzimande and Khosa, with an additional sum of at least R1 million going to the South African Communist Party (SACP). The purpose of these alleged payments was to secure profitable tenders for the service providers responsible for distributing NSFAS allowances.
Corruption Unveiled within NSFAS
OUTA’s report, supported by the leaked recordings, exposes corruption and mismanagement within NSFAS, which is just the latest in a series of scandals plaguing the organization. Despite these revelations, Minister Nzimande dismisses the allegations as baseless gossip, claiming they are intended to disrupt the smooth start of the academic year in 2024.
Nzimande’s Response and Legal Threats
Minister Nzimande vehemently denies the allegations made by OUTA, stating that he has never diverted funds to support the SACP or any other entity. He further warns OUTA that he has the right to take legal action against them for publishing their investigation, as he believes the accusations are damaging and without merit.
NSFAS and the Direct Allowance Payment System
The NSFAS Direct Allowance Payment System, which aimed to empower students by giving them control over their allowances, is now being scrutinized. Investigation results point towards potential relationships between key individuals, including NSFAS CEO Andile Nongogo, and the four companies responsible for facilitating direct payments to students.
OUTA Raises Concerns About Tender Irregularities
OUTA raises concerns regarding irregularities in the tender process for direct NSFAS allowance payments. They suggest possible inflated charges for services related to students’ NSFAS bank accounts and highlight Nongogo’s potential involvement in the tender awarding process, citing his previous activities at the Services SETA.
Termination of Direct Payment Service Providers’ Contracts
Following an independent report by Werksmans Attorneys, former NSFAS CEO Andile Nongogo’s tenure was terminated in 2024 due to suspected ties with fintech companies involved in NSFAS allowance payments. Khosa acknowledges the irregularities and states that NSFAS is taking steps to terminate contracts with direct payment service providers. The organization aims to reach a fair resolution that does not adversely impact students.
