Report findings lead Nsfas to cancel its contract of its four service providers
By: Tsakisi Muhlari
Twitter: QueenTsakiey
Email: tsakisi200@gmail.com
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| Andile Nongogo has been fired as CEO of the National Student Financial Aid Scheme. (Photo: Supplied) |
Twitter link of media advisory:https://x.com/myNSFAS/status/1714604697145794766?s=20
The Fund reported yesterday that it had adhered to the
findings and the recommendations of Werksmans Attorney Tembeka Ngcukaitobi SC
on the allegations of irregularities in the funding scheme.
They established that the Fund’s CEO Andile Nongogo
had actively played a role in choosing companies to disburse allowances to
beneficiaries of the R47bn fund.
The companies, eZaga Holdings, Coinvest Africa, Norraco
Holdings and Tenet Technology, were recruited last year following a tender
process.
According to the Fund's committee which met last week to consider the findings of the report, it noted that there was no viability study before the implementation of the direct payment system, especially the justification for the appointment of the service providers.
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| NSFAS Chairpersn Ernest Khoza handing over a report to Minister Blade Nzimande on allegations against Andile Nongogo Photo: Facebook |
“Such an assessment would have allowed NSFAS to make an
informed decision on the proposed solution and to assess the practicability and
chances to success of the proposed direct payment solution,” said NSFAS
chairperson Ernest Khoza, during a media briefing in Tshwane yesterday.
The four financial technology companies were often blamed
for delayed payments of allowances and sometimes students would experience
dubious withdrawals in the accounts. Some of them even took to the streets to
voice their anger earlier this year.
The report confirmed that Nongogo actively participated in
the presentation to the Bid Evaluation Committee (BEC) of proposals by service
providers.
This is a material infringement of the public procurement
operation of NSFAS which he was employed to keep safe and uphold. In addition,
the report reveals that there seems to have been a dispute of interest in the
appointment of these service providers.
“The report stated that the CEO appointed Dr Chirwa to
help the Bid Evaluation Committee (BEC) as a technical advisor. This
appointment was inherently not accurate, as the 2021 SCM Policy does not
provide for the appointment of an expert to the BEC. What is more noteworthy is
Dr Chirwa’s association with certain companies that were assigned as service
providers, both at the service Seta and at NSFAS,’’ said Khoza.
He said that Nongogo was handed the report yesterday and
the four companies were also well informed of the contents of the report.
“We will advise all the four direct payment services that their contracts are going to be terminated. The (NSFAS) committee will ensure that this termination does not affect the students negatively. In this regard, the committee is mindful of the universities they have over the next step and will consider both the law and the implications to service delivery,” he explained.
He added that they await a letter from Nongogo telling the
committee why they should not terminate his contract and will subject all the
staff members that are implicated to a disciplinary enquiry.
Students have been lodging complaints about the direct
payment system claiming that it has exhausting funds. Khoza said that the board
was committed to carry out the direct payment system.
Listen to TUT SRC grievances with the new NSFAS payment method.https://soundcloud.com/tsakisi-tsakisi/tut-src-grievances-with-new-nsfas-payment-method?si=4c6b670c1d804cff882a27d51cb3faa9&utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing
“We regard a direct payment service provider as a mandatory measure to reduce instances of unauthorised approach to beneficiarie’s allowance, payment of ghost students and inconsistencies and delayed payment of allowances,” he added.
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