DA calls for NSFAS direct payment service contracts to be set aside until its reviewed for tender inaccuracies

17 August 2023

While the DA welcomes the decision by the National Student Financial Aid Scheme (NSFAS) board to place its CEO, Andile Nongogo, on special leave, it is very worrying that the Minister of Higher Education, Dr Blade Nzimande, seemingly failed to take OUTA’s investigation into account when he stated that everything regarding these contracts is above board.

Now that Nongogo has been placed on special leave, Minister Nzimande and the NSFAS board have no option but to provisionally suspend the contract until they are satisfied no tender irregularities took place, following the outcome of the Special Investigating Unit (SIU) and Public Protector investigations. They must show urgency in releasing the long overdue comprehensive funding model for public input.

Nongogo was placed on special leave after allegations of tender irregularities at the Services Sector Education and Training Authorities (SSETAs) and his continued acquaintance with the tender-recipients that became Coinvest Africa directors.

The Minister’s clear lack of interest to get clarity on the tenders of the NSFAS direct payment services does not inspire confidence that the Scheme is prioritising student welfare.

Students have been evicted from residences due to NSFAS’ failure to pay accommodation service providers, forcing them to abandon their studies. Demands have also been placed on students by institutions of higher learning to pay towards their tuition fees.

We are therefore not surprised that student representative councils (SRCs) and student organisations in their own capacity took to the streets to voice their anger and frustration yesterday. We commend them for the peaceful way they went about this protest to Parliament.

Now that Nongogo has been placed on special leave, Minister Nzimande and the NSFAS board have no option but to provisionally suspend the contract until they are satisfied no tender irregularities took place, following the outcome of the Special Investigating Unit (SIU) and Public Protector investigations and show urgency in releasing the long overdue comprehensive funding model for public input.

Issued by Chantel King, DA Shadow Minister of Higher Education, 17 August 2023