Higher Education Minister Blade Nzimande has confirmed the appointment of Professor Lourens Van Staden as acting Chairperson of the National Student Financial Aid Scheme (NSFAS) with immediate effect.
The minister revealed that he held a briefing session with Van Staden to emphasise the importance of NSFAS to prioritise readiness for the beginning of the 2024 academic year.
NSFAS funds more than a million students enrolled in approved programmes at Universities and Technical and Vocational Education and Training (TVET) colleges in South Africa. They are also processing 2024 bursary applications.
The acting Chairperson will also prioritise the employment of a new CEO and fully implement the Werksmans report that was commissioned by NSFAS.
In 2023, the NSFAS Board enlisted the services of law firm Werksmans Attorneys and advocate Tembeka Ngcukaitobi to examine allegations of irregularities surrounding a tender granted to four firms for disbursing student allowances.
This investigation stemmed from accusations against the now-dismissed NSFAS CEO, Andile Nongogo, regarding a conflict of interest in the selection of service providers.
The inquiry revealed that Nongogo actively participated in presenting proposals by service providers to the Bid Evaluation Committee (BEC). Furthermore, it established that he breached NSFAS's public procurement processes and the responsibilities he was employed to safeguard and uphold. As a consequence, he has been terminated from his position.
Why Van Staden Was Appointed
Nzimande’s announcement comes just days after NSFAS Board Chairperson Ernest Khosa voluntarily tabled a notice of 30 days' leave of absence. Their leave of absence will allow the organisation to investigate claims made against him and Minister Nzimande.
The Organisation Undoing Tax Abuse (OUTA) claims that Khosa along with Nzimande received kickbacks for the awarding of a lucrative tender.
OUTA released voice recordings from two meetings between NSFAS Board Chairperson Ernest Khosa and a service provider representative. The recording suggests that in exchange for these payments, the service providers would be awarded lucrative tenders to pay NSFAS allowances to qualify students and receive protection.
Nzimande has denied any wrongdoing concerning allegations made by OUTA and said he is considering legal action.
