South Africa (Commonwealth) _ The NSFAS board of directors has resolved to cancel the contracts of its four direct payment providers, who are in charge of paying student allowances.
The Fund said yesterday that it has followed Werksmans Attorney Tembeka Ngcukaitobi SC’s findings and recommendations on claims of anomalies in the funding system. They discovered that the Fund’s CEO, Andile Nongogo, had actively participated in selecting companies to distribute allowances to R47 billion fund beneficiaries.
Following a tender process, the businesses, eZaga Holdings, Coinvest Africa, Norraco Holdings, and Tenet Technology, were engaged last year.
According to the Fund’s board, which met last week to discuss the report’s findings, there was no feasibility analysis prior to the implementation of the direct payment system, notably the basis for the recruitment of service providers.
Such an assessment would have allowed NSFAS to make an informed judgment on the proposed solution, as well as analyze the practicability and possibilities of success of the proposed direct payment solution, according to NSFAS chairperson Enerst Khoza during a media briefing in Tshwane yesterday.
The four fintech companies were frequently accused for delayed allowance payments, and students occasionally saw questionable withdrawals from their accounts. Earlier this year, some of them took to the streets to express their dissatisfaction.
According to the report, Nongogo actively participated in the presentation of service providers’ proposals to the Bid Evaluation Committee (BEC).
This is a serious violation of the NSFAS public procurement processes, which he was hired to protect and respect. Furthermore, the research finds that the appointment of these service providers appears to have involved a conflict of interest.
According to the report, the CEO also nominated Dr. Chirwa as a technical advisor to the Bid Evaluation Committee (BEC). This appointment was intrinsically erroneous because the SCM Policy for 2021 does not call for the appointment of an expert to the BEC. What is more notable is Dr Chirwa’s affiliation with some organizations that were appointed as service providers, both at Seta and at NSFAS, according to Khoza.
All four direct payment services will be notified that their contracts will be canceled. The (NSFAS) board will ensure that this termination has no negative impact on the pupils. In this regard, the board is conscious of the universities they worked with in the previous stage and will consider both the law and the implications for service delivery.
He also stated that they will be expecting a letter from Nongogo explaining why the contracts should not be terminated and will subject all staff members involved to a disciplinary investigation. Students have been protesting about the direct payment mechanism, stating that funds have been depleted.
The board, according to Khoza, is dedicated to adopting the direct payment method. We regard a direct payment service provider as a vital solution to eliminate cases of unauthorized access to beneficiaries’ allowances, payment of ghost students, discrepancies, and delayed payment of allowances, he added.
The National Student Financial Aid Scheme (NSFAS) is a South African government student financial aid scheme that helps undergraduate students pay for the cost of their tertiary education after they graduate from high school. The Department of Higher Education and Training funds it. The program also administers bursaries such as the Funza Lushaka Teacher Bursary (for students pursuing a teaching qualification), the DHET Disability Bursary, and various bursaries administered by Sector Education and Training Authorities (SETAs).
The Tertiary Education Fund of South Africa (TEFSA) was replaced by the National Student Financial Aid Scheme in 1999.TEFSA was a non-profit organization that controlled and operated NSFAS from its inception until 2000. TEFSA was transformed into a statutory entity called NSFAS in 1999.
