Cape Town - The National Student Financial Aid Scheme (NSFAS) Board is scheduled to start an investigation into CEO Andile Nongogo today, as well as review the NSFAS procurement systems and processes.
The NSFAS Board revealed that it had appointed Werksman Incorporated to investigate the allegations against Nongogo’s work with the Services Sector Education and Training Authority (Services Seta) and the awarding of bids at NSFAS.
The investigation will focus particularly on the Direct Payment Project, piloted last year for TVET colleges and implemented this year for university students.
In June, NSFAS-funded university students received their allowances through a NSFAS bank account, with four service providers appointed to facilitate the disbursement of funds.
Advocate Tembeka Ngcukaitobi and Sandile July will lead the investigation.
While the investigation is taking place, Nongogo will be on a leave of absence, and chief financial officer Masile Ramorwesi will be acting CEO until further notice.
Board chairperson Ernest Khosa said: “Once again, the board of directors wishes to reiterate its commitment to clean governance.”
Last week, Higher Education, Science and Technology Minister Blade Nzimande gave NSFAS board until August 30, to say how it would deal with the challenges to the direct payment solution, after the announcement of the investigation and student protests related to NSFAS.
Students from across universities marched to Parliament on Wednesday, over the “disastrous” implementation of the direct payment system through third-party companies – Coinvest Africa, eZaga Holdings, Noracco Corporation, and Tenet Technology, as well as the defunding of students by NSFAS.
A memorandum of demands was handed to the National Assembly committee on higher education and the Department of Higher Education.
Demands as per the memorandum include Consultations with the Student Representative Councils (SRC); Proclamation for Special Investigative Unit (SIU) to investigate NSFAS; Decentralise NSFAS for swift solutions; Immediate review to the defunding of students; Dismantle the NSFAS accommodation cap; Embrace and empower the Missing Middle; Rejection of the 60-credit policy; Consistency in NSFAS funding criteria; and Reject NSFAS Direct Payment mandate.
In September, the Organisation Undoing Tax Abuse (Outa) began an investigation into the mismanagement of student funds and tender corruption at NSFAS. Outa found that NSFAS hired businesses without banking licences or VAT registrations to handle direct payment of student allowances.
Those appointed were awarded a tender without being financial service providers. It also found that they charged students much higher fees than major banks would.
University of the Western Cape SRC said at UWC alone, 644 students had been defunded by NSFAS to date.
“They are now left high and dry, unsure of when and what they will eat or where they will sleep because many of them are living in private accommodations and without any funding. Their presence in private accommodations is not guaranteed.”
InMay, the new condition by NSFAS led to the defunding of 822 Cape Peninsula University of Technology students.
Last year, in August, President Cyril Ramaphosa authorised the SIU to investigate allegations of corruption and maladministration at NSFAS and to recover any financial losses suffered by the state through corruption and negligence.