NSFAS Cuts Ties with Corrupt Service Providers Amid Scandal
- NSFAS will no longer use Coinvest, Ezaga, Naracco or Tenet to distribute student allowances due to corruption allegations implicating high-ranking officials
- Allowances will be distributed through universities for the rest of 2024
- Student leaders welcomed the decision but called for transparency and timely disbursements
Reitumetse Makwea, a Briefly News current affairs journalist in Pretoria, South Africa, has covered education, court, accidents, weather and crime-related news at The Citizen and Rekord Noweto for over five years.
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The National Student Financial Aid Scheme (NSFAS) announced that it will no longer use the services of Coinvest, Ezaga, Naracco, and Tenet to distribute student allowances.
These service providers have been accused of corruption, with allegations implicating the NSFAS CEO, the South African Communist Party (SACP) and the former Chairperson of the NSFAS Board.
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NSFAS statement on allowance distribution
In a recent statement, NSFAS declared that for the remainder of the 2024 academic year, university students’ allowances will be distributed through institutions (universities).
"This means we will continue with the current arrangement where NSFAS disburses allowances to institutions, which then distributes allowances to students until the end of the 2024 academic year.”
This decision follows an investigation by the Organisation Undoing Tax Abuse (OUTA), which uncovered irregularities in the contracts with the implicated service providers.
Student leaders are impressed with the decision
Student leaders and organisations said they were happy with this development, highlighting a mix of relief and scepticism.
The South African Students' Congress (SASCO) told Briefly News this was a progressive move.
"While we welcome NSFAS's decision to cut ties with these corrupt service providers, we remain vigilant. This move must be accompanied by comprehensive measures to ensure transparency and accountability in the future."
The Economic Freedom Fighters Student Command (EFFSC) at the Tshwane University of Technology, Lerato Mokoena, was more critical.
"This is a step in the right direction, but it's long overdue. Students have suffered for too long due to these corrupt practices. We demand swift action against all individuals implicated in these scandals.
"We are pleased that NSFAS has taken this decision, but we need assurance that this will not disrupt students' access to allowances. Consistent and timely disbursement is crucial for students' academic success."
Blade Nzimande, NSFAS chair Ernest Khoza allegedly received millions from service providers
Briefly News previously reported that Blade Nzimande, the Minister of Higher Education and Training, has been implicated in a corruption scandal involving millions.
The Organisation Undoing Tax Abuse exposed two recorded meetings in which Nzimande and NSFAS’ chairperson were accused of receiving millions in kickbacks from service providers.
Mzansi was in disbelief at the extent to which government officials were accused of looting state coffers.
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Source: Briefly News
