The CEO at the National Student Financial Aid Scheme (NSFAS) has been put on special leave.
NSFAS board chairperson Ernest Khoza announced the decision to put Andile Nongogo on special leave amid growing concerns over bids awarded to four companies disbursing student allowances.
The Organisation Undoing Tax Abuse (Outa) laid criminal complaints against Nongogo and three others, related to the over-inflation of a specific tender, when Nongogo was CEO of the Services Sector Education and Training Authority ( SSETA).
However Khoza said while the allegations related to Nongogo's work with the SSETA, the Board would investigate whether this related to "unacceptable“ conduct in the awarding of bids at NSFAS.
Khoza said: " NSFAS runs close to a R50 billion budget which services young people from poor and working-class backgrounds. In the interest of the image of NSFAS, the Board has resolved to investigate the allegations with a particular focus on the Direct Payment project".
Today, disgruntled students marched on parliament, to call on the Portfolio Committee on Higher Education and Training and the Department of Higher Education and Training (DHET) to demand action to end the "tumultuous" state of NSFAS.
The student protest was led by Student Representative Councils and various Student Organisations across the country.
The students also accused NSFAS of being "inefficient" and said the decisions on the caps on student accommodation, delayed payments and defunding in the middle of the year, had a detrimental effect on them.
"We unequivocally reject the current Direct Payment system which perpetuates excessive fees", the students said in a memorandum handed to representatives of the DHET and the Portfolio Committee.
They also called for the decentralisation of NSFAS to allow for speedy access by students matters such as appeals against funding decisions.
In October 2022 OUTA released an investigation report on the NSFAS direct payment scheme.
The organisation believed that the tenders awarded to Coinvest Africa, Tenet Technology, Ezaga Holdings and Norraco Corporation were "irregular,"
At the time OUTA said the companies did not have banking licences or VAT registrations to handle the direct payment of student allowances.
Shortly after the roll out of the system early this year students complained of "monies disappearing" from their accounts, exorbitant banking fees as well as the late payment of allowances.
"To date, NSFAS has not published the agreed fee structure it has with the service providers. NSFAS was determined to adopt a monthly fee of R102.35 when the tender was awarded. After pressure from students and civil society, the monthly fee was decreased to R12, but it seems that the transaction fees increased drastically", said OUTA.
The Special Investigating Unit (SIU) is also conducting investigations into NSFAS.
William Sezoe, vice-chairperson of the Stellenbosch University SRC also submitted a complaint to the Public Protector , while Action SA announced that they would approach the High Court to review the NSFAS decision to implement the scheme and the awarding of the tenders.