NSFAS CEO Placed On Special Leave Pending Investigation


Please share this article

Advertisement


As the controversy around The National Student Financial Aid Scheme’s new payment system continues, the bursary scheme has launched an internal probe. Now, the current NSFAS CEO has come under more public scrutiny following a report into allegations of mismanagement.
 


Advertisement i


The National Student Financial Aid Scheme (NSFAS) has announced that its CEO, Andile Nongogo, has been placed on special leave as a result of mounting concerns regarding the awarding of contracts to service providers responsible for the bursary scheme's direct payment system.

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. During the course of the investigation, the Chief Executive Officer will be on leave of absence. 

The decision comes amidst public outrage and a report by the Organisation Undoing Tax abuse (OUTA) highlighting questionable practices surrounding these contracts.

Questionable Direct Payment Contract

The recent controversy revolves around the awarding of contracts to four service providers tasked with managing the direct payment system for student allowances within the NSFAS framework. According to the OUTA report, these service providers were hired without proper banking licences and were charging excessive rates for their services.

OUTA CEO, Wayne Duvenage, expressed that the intervention was critical, as the service providers initially planned to impose significantly higher transaction fees compared to the existing rates

"Initially they were going to charge R102 on student bank accounts for a monthly fee. That was quickly reduced to R29 and eventually to R12 which is still double what other service providers can offer," said Duvenage.

Financial Implications

The implications of the alleged improprieties are substantial. The appointed service providers, including Tenet Technology, eZaga, Norraco Corporation, and Coinvest Africa, were estimated to collectively generate a staggering R4.3 million per month from the newly introduced bank charges and other associated fees.

CEO Placed on Special Leave

In response to the mounting allegations and the public outcry, the NSFAS Board decided to initiate an investigation into the matter, with a particular focus on the Direct Payment project. 

As a result, CEO Andile Nongogo has been placed on a leave of absence for the duration of the investigation. This move was primarily made to safeguard the image of NSFAS and to allow for an impartial examination of the allegations.

Masile Ramorwesi, the Chief Financial Officer of NSFAS, will assume the role of acting Chief Executive Officer in Nongogo's absence.

Wider Implications and Criminal Complaint

OUTA's investigations have revealed further concerns regarding Nongogo's actions. OUTA has lodged a criminal complaint against Nongogo for his previous role as the CEO of the Services Sector Education and Training Authority (SSETA). 

Their investigations into SSETA indicated alleged waste of R37 million due to inflated prices, questionable tender awards, and disregard for financial regulations.

OUTA's report indicates that invoices for these transactions were signed off by Nongogo during his tenure at SSETA. The organisation has also taken formal action against Nongogo by lodging a complaint with the South African Institute for Chartered Accountants (Saica).

The investigation into the alleged improprieties surrounding the direct payment contracts and the subsequent actions taken against CEO Andile Nongogo will undoubtedly shape the future of NSFAS and its commitment to financial transparency and student support.

Suggested Article:

NSFAS Students protesting

The message is clear, students are vehemently rejecting the implementation of the new NSFAS direct allowance payment system. This as many NSFAS beneficiaries have not yet received their NSFAS allowances, leaving them with no money to purchase food and learning materials. 

 






Online Shopping Links

Loot - Takealot - Temu - Amazon - Shein





Advertisement


WhatsApp Channel

Sponsored Ad

Advertisement

Advertisement

Google News

Post-Matric Options

 

We helped you with past papers for your matric exams, so hopefully you are happy with your Matric results. So now you are faced with a lot of post-matric options that can shape your future paths. You might want to study law, teaching, or nursing. Of course studying is expensive so we have helpful advice about student loans, NSFAS bursaries, Fundi loans, ISFAP, and lots of other funding options.

These options range from pursuing higher education at universities , TVET Colleges or  private colleges, finding student accommodation, entering vocational training programs (like Learnerships and internships), joining the workforce, or even starting your own business. There are so many choices but we are here to help.

Advertisement


Latest SASSA articles

The R370 grant is aimed at assisting unemployed adults living in South Africa. Here's the R370 grant eligibility criteria.. 

Knowing when you social grant will be paid is extremely helpful as it allows for planning. Here's a guide on how to find you Sassa grant payment dates. 

Where to Study


Advertisement m


Other Articles

Looking for a job at Hyundai in South Africa? Hyundai is a well-known automotive company offering various career opportunities in fields like administration, sales, finance, and technical services.


Advertisement


Latest SASSA articles

The R370 grant is aimed at assisting unemployed adults living in South Africa. Here's the R370 grant eligibility criteria.. 

Knowing when you social grant will be paid is extremely helpful as it allows for planning. Here's a guide on how to find you Sassa grant payment dates. 


Advertisement


Careers Advice

Looking for a job at Hyundai in South Africa? Hyundai is a well-known automotive company offering various career opportunities in fields like administration, sales, finance, and technical services.


Advertisement i