NSFAS CEO To Be Charged With Fraud And Corruption

Please share this article


The National Student Financial Aid Scheme is no stranger to controversy and allegations of fraud, corruption and maladministration. Now, the CEO of the bursary scheme may be soon placed under investigation after criminal complaints were laid against him.


Allegations Against NSFAS CEO

The National Student Financial Aid Scheme (NSFAS) frequently makes headlines, and typically for all the wrong reasons. This time it is the NSFAS CEO, Andile Nongogo, that may be facing criminal charges relating to the over-inflation of a tender box provided by Five Star back in 2016.

Nongogo is not the only one who may be placed under investigation following these claims, as Duduzile Mwelase, senior manager at the Services Sector Education and Training Authority (SSETA), and Anania Baloyi and Ngwenya Baloyi, both from Five Stars Communications, have also been accused of fraud and corruption.

Nongogo was the former CEO of SSETA during the time of this alleged fraud and corruption.

The Organisation Undoing Tax Abuse (OUTA) has called for an investigation into the four individuals for their involvement, and Nongogo and Mwalase are also to be investigated for contravening the Public Finance Management Act (PFMA).

This tender was awarded to Five Star back in August 2016, who allegedly over-inflated their bid on the branding of a tender box by 8 000%, which is roughly R292 000. The total cost of the quote came to an outrageous R302,010.

The tender was awarded for a period lasting 19 months from August 2016 until 31 March 2018, for the design, development and supply of branded promotional items required by SSETA.

Rudie Heineken, the portfolio manager at OUTA, revealed that Five Star supplied numerous branded items and other services to SSETA and received R36,962 million for their services.

This tender box was recorded in the asset register at SSETA for only R9 690. This tender box is a simple wooden cabinet with the SSETA logo on it. 

Mwalase is the one who accepted the delivery of the branded box which Nongogo then authorised payment of the invoice and on 1 March 2023 Five Star was paid R302 010 as stated on the invoice. This invoice had Nongogo’s signature on it.

Heineken believes that the four individuals who were involved in approving the quotes and payments were complicit in the misappropriation of these public funds.

Companies who charged these exorbitant prices and public officials who approved payment of inflated tenders, should all be held to account for the abuse of taxpayers’ money.

Additionally, OUTA calls for suppliers to be listed on National Treasury’s restricted suppliers’ database so that they will be prevented from conducting business with any state entities.

NSFAS Responds To The Situation

In a media statement published on Twitter, NSFAS assures the public that these alleged transgressions "have nothing to do with Nongogo's current responsibilities and mandate at NSFAS."

NSFAS expresses disappointment that the media has attempted to link these crimes to NSFAS, when this claims have to do with Nongogo's employment by SSETA. 

The scheme also acknowledges that since it has adopted new policies relating to the payment of allowances and student accommodation, the CEO has been the victim of multiple attacks via short messaging services. These attacks are being dealt with through security structures.

For all the latest NSFAS news and information visit the Careers Portal NSFAS section.


Suggested Article:

New NSFAS bank card

All university students funded by the National Student Financial Aid Scheme have been urged to complete the onboarding process for the new bank account system. Failure to do so could result in their July allowances being delayed.


WhatsApp Channel

Sponsored Ad



Google News

Post-Matric Options


After completing your matric certificate exams, you are faced with a multitude of post-matric options that can shape your future paths.

These options range from pursuing higher education at universities or colleges, entering vocational training programs, joining the workforce, or even considering entrepreneurial ventures, each offering unique opportunities for personal and professional growth.

You've probably been contemplating the next chapter of your life all throughout the year asking yourself, 'what am I going to study after I finish completing my matric certificate exams?', 'am I going to study? What else can I do when I pass'? Well, we can help.


Where to Study


Other Articles

Despite all the bad economic news, there are a few brighter lights on the economic horizon. Mancosa's Dr Ridwaan Asmal points out that there may be some good news for South Africans in the last quarter of the year.


Latest SASSA articles

The South African Social Security Agency(Sassa) is still in the process of paying out the R350 grant to all qualifying applicants. However, if you are curious as to which grant payment collection methods Sassa currently has in place, then the following answer may be of interest to you. 

The President has confirmed that the SRD Grant is here to stay - and is going to be improved. So its still worth submitting an appeal if you were rejected unfairly for the R350 grant. Here is how the process you should follow and details on how long you can expect to wait. 


Careers Advice

If you recently matriculated but pursuing a tertiary education is not part of your future plans or perhaps you are not sure which path to pursue, then you might want to consider joining the South African Navy. The MSDS is the easiest way to enter the SA Navy.