NSFAS Terminates Contracts with Alleged Corrupt Service Providers
The National Student Financial Aid Scheme (NSFAS) has 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 and the NSFAS has taken the decision to sever all ties with them. The NSFAS CEO, the South African Communist Party (SACP), and the former Chairperson of the NSFAS Board have been implicated in the scandal.
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NSFAS DIRECT PAYMENT CONTRACTS OFFICIALLY ABORTED.
NSFAS will no longer use the Coinvest, Ezaga, Naracco and Tenet service providers accused of corruption to pay student allowances. These are the same contracts that OUTA found to have implicated the NSFAS CEO, SACP and the… pic.twitter.com/vKZ6UnCIft
— Marvel Hlungwani (@MarvelHlungwan) July 12, 2024
“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 and organisations said they were happy with this development, highlighting a mix of relief and scepticism.
The South African Students’ Congress (SASCO) said 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.”
The Organisation Undoing Tax Abuse has been the lead investigator and the strongest anti-corruption campaigner against corruption at NSFAS. The organisation exposed two recorded meetings in which Nzimande and NSFAS’s chairperson were accused of receiving millions in kickbacks from NSFAS’s service providers.