The previous National Student Financial Aid Scheme (NSFAS) board was terminated due to its failure to address irregularities in contracts awarded to service providers managing student allowance payments. NSFAS was embroiled in controversy following an investigation by Werksmans Attorneys.
The investigation revealed potential conflicts of interest between the former NSFAS CEO and fintech companies involved in distributing student funds.
The report recommended the termination of these contracts, but the NSFAS board failed to act. This led to the board's dissolution by the Higher Education Minister.
The first one is the inability of the NSFAS to fully implement the recommendations of the Werksmans report, including the termination of the contract of the direct payments that it provides to those who had been appointed irregularly.
The new Higher Education Minister has pledged to implement the recommendations of the Werksmans report, which aims to ensure that NSFAS funds are used transparently and effectively.
NSFAS continues to face legal challenges in its efforts to terminate contracts with service providers. Despite a June ruling by the Western Cape High Court supporting NSFAS's decision, the recent reinstatement of eZaga Holdings' contract has thrown a wrench into the process.
Minister Nkabane has said, "I am committed to addressing Werkmans in the report, and as such employees who are implicated in wrongdoing will face consequences within our processes, including criminal charges."
The termination of a service provider's contract is a matter before our legal system, and it is best to leave it to the courts for education.
Despite legal challenges, NSFAS is committed to terminating the irregular contracts and taking disciplinary action against any employees involved in wrongdoing.
The scheme is appealing the reinstatement decision and is also pursuing legal action at the Special Tribunal to void the contracts due to alleged procurement irregularities. Both NSFAS and the Special Investigating Unit (SIU) have filed applications with the Tribunal to declare the contracts invalid.
NSFAS administrator Freeman Nomvalo has reiterated the scheme's unwavering commitment to terminating the service provider contracts and taking disciplinary action against any employees found to be involved in wrongdoing.
We have responded in response to the challenge, that, interdicted, which we had lost in July, and we are appealing we are appealing that process and the process is underway.
"As it relates to the disciplinary process of the employee, the CEO is not with us and the CFO. The other employees even reported was, the level of capability of the rest of the employees was not as severe as part of the CFO as well as the CEO."
