ORGANISATIONS and students at universities across the country who decried the implementation of the National Student Financial Aid Scheme’s (NSFAS) new direct payment system have finally been vindicated by the scathing findings of an independent investigation report.
Revealed during a media briefing in Pretoria yesterday, the investigation conducted by Werksmans Attorneys and advocate Tembeka Ngcukaitobi, discovered irregularities and conflicts of interest during the selection process of the four service providers appointed to take charge of the new payment system which commenced in June 2023.
It further revealed that no feasibility study was conducted before the implementation of the direct payment system, and neither was the justification for the appointment of eZaga, Coinvest, Tenetech, and Norraco provided.
To make matters worse the report further detailed how there were ‘drastic changes’ made in the mandatory requirements to the bid specifications to include fin-tech companies.
An action which had resulted in pertinent questions such as the need to appoint four service providers, their value-added service, direct costs to students and details of cancellations being left in limbo.
NSFAS CEO Andile Nongogo was also fingered for wrongdoing, as he was reported to have participated in presentations to the Bid Evaluation Committee (BEC) of proposals by service providers, which was a material violation of the NSFAS public procurement processes which he was meant to uphold.
Nongogo allegedly went further and appointed (a) Dr Chirwa to assist the committee as a technical advisor, despite the 2021 Supply Chain Management Policy not providing for the appointment of such an expert.
A ‘possible relationship’ between Nongogo and two of the companies, namely Coinvest and eZAGA also existed according to the report, while Dr Chirwa on the other hand was found to have associations with eZAGA Holdings.
As a result of the lack of due diligence in vetting the service providers, it was discovered that Tenet Technologies held the same directors as Coralite (Pty) Ltd, the very same company they alleged to subcontract the work to.
Board chairperson, Ernest Khosa, said the board would implement the findings immediately, starting off with affording Nongogo an opportunity to advise why his contract should not be terminated.
Khosa said all staff members associated with wrongdoing would be subjected to a disciplinary enquiry.
“We will advise all the four direct payment service providers that their contracts will be terminated and the Board will ensure that this termination does not affect the students negatively. We will also review the SCM Policy, in line with the National Treasury Regulations and Policies, including the Public Finance Management Act.”
“All these decisions of the board will be implemented progressively, from today, the 18 October 2023,” he said.
The latter comes as a welcome decision, especially for student leaders from institutions such as the University of Pretoria (UP), Tshwane University of Technology (TUT), and the University of Limpopo, who have for months decried the exorbitant fees charged by the service providers.
At one stage, student leaders from the Tshwane University of Technology said the new service providers had failed to pay the meal allowances to as many as 14 000 needy students.
To add salt to injury, some of the student leaders are also facing disciplinary hearings for taking part in protest action against the continued use of service providers they alleged were inexperienced.