The National Student Financial Aid Scheme (NSFAS) Board has welcomed the Labour Court's decision declaring the termination of the former CEO Andile Nongogo's employment contract as lawful.
The news of Nongogo's termination as CEO comes months after NSFAS decided he should leave his position at the government entity.
NSFAS funds more than one million students currently enrolled at public universities and Technical and Vocational Education and Training (TVET) Colleges around South Africa.
From 2022, NSFAS-funded students began receiving their allowances via a direct allowance payment system. However, their system has been clouded under controversy.
An investigation carried out by Werksmans Attorneys focused on irregularities related to Bid NO. SCMN022/2021, which involved the appointment of service providers for the NSFAS direct payment system.
The investigation found that there may have been possible relationships between key individuals including NSFAS CEO Nongogo and the Fintech companies appointed to pay allowances directly to students.
It was also revealed that there was active involvement of the CEO in the presentation to the Bid Evaluation Committee and potential conflicts of interest in the appointment of service providers.
Following the release of some of the investigation's findings, NSFAS announced that they would be terminating Nongogo’s contract. However, Nongogo launched legal action to challenge the board's decision.
The decision by the Court vindicates the NSFAS Board in terminating Mr Nongogo’s contract of employment following his irregular involvement in the appointment of the direct payment service providers.
The court also dismissed Nongogo's application to strike out certain paragraphs in the Werksman Attorneys' report, which implicated him in irregular conduct related to the appointment of direct payment service providers.
The court's decision supports the NSFAS Board's actions and is seen as a step towards combating corruption. The Werksman Attorneys' report is considered crucial for elevating NSFAS's awareness and improving internal supply chain management.
The termination of the direct payment service providers will be handled with due care not to disrupt the disbursement of the allowances to students in the 2024 academic year.
NSFAS will now intensify efforts to terminate contracts with direct payment service providers, ensuring a smooth disbursement of allowances for the 2024 academic year. The focus will then shift to preparing for the seamless start of the 2024 academic year.
Related Articles: How To Renew Your Driver Licence
