Scrap NSFAS tender system, Accountability Now says

Accountability Now director Paul Hoffman has called for an overhaul of state funding for students in the wake of alleged kickbacks and corruption at the National Student Financial Aid Scheme (NSFAS), which handles more than R46bn in education grants.

In an interview with Newzroom Africa, Hoffman said the tender system should be scrapped and funds paid directly to undergraduates after a report by the Organisation Undoing Tax Abuse (Outa) alleged that higher education minister Blade Nzimande, the SA Communist Party (SACP), and NSFAS board chair Ernest Khosa received millions of rand in bribes from service providers.

Khosa has taken voluntary leave of absence pending an investigation into the claims, while calls are growing for the resignation of Nzimande whose department oversees NSFAS.

Nzimande and Khosa have denied any wrongdoing.

The corruption allegations at NSFAS surfaced three months after the board fired former CEO Andile Nongogo following a report by law firm Werksmans Attorneys and advocate Tembeka Ngcukaitobi that detailed irregularities in a tender awarded to four companies.

The Outa report alleges Nzimande and Khosa were involved in malfeasance.

Hoffman told Newzroom Afrika believes NSFAS should take over the distribution of direct payments.

“The service providers, some of them have been involved in shenanigans that benefited the SACP, if not the minister of higher education, were unnecessarily appointed because the staff of NSFAS are meant to be dishing out the grants to students. Subcontracting it out was done irregularly and illegally,” he said.

“It’s not their job to find other people to do their work. It is their job to do their work, that is where the basic flaw in the system happens.” 

The EFF, ActionSA and the DA have opened criminal cases regarding the allegations against Nzimande and Khosa.

Hoffman said the spotlight was on the Hawks and the National Prosecuting Authority (NPA) to investigate the allegations and scrutinise documents supplied by Outa.

“The ball is in the court of the Hawks and NPA. We must just hope it is not sent to them to die of unnatural causes but that they will give attention to the docket,” he added. “We should expect a criminal prosecution by the Hawks and the NPA in a case such as this where angry students burn universities if they do not get the grants they expected. 

Nzimande on Monday hit back at the claims against him and Khoza, saying they were false.

“As minister of higher education, science and innovation I have never used money from any of my department’s entities for funding the SACP, as maliciously suggested in the Outa report,” he said. “Nor have I received personal kickbacks from the service providers to NSFAS or any of the other entities falling under my departments.”

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