Chairperson of NSFAS Takes Leave During Investigation

Chairperson of NSFAS Takes Leave During Investigation. In the wake of severe allegations implicating NSFAS Board Chairperson, Ernest Khosa, in corruption, a significant decision has been made to address the accusations and ensure accountability within the National Student Financial Aid Scheme.

Khosa Takes Voluntary Leave Amid Corruption Allegations

In response to damning allegations, Ernest Khosa, the NSFAS Board Chairperson, has voluntarily initiated a 30-day leave of absence. The decision aims to facilitate a thorough investigation into corruption claims brought against him, particularly in relation to alleged kickbacks tied to a lucrative tender contract.

Allegations and Denials

Less than two weeks prior to Khosa’s leave announcement, audio recordings released by the Organisation Undoing Tax Abuse (OUTA) suggested involvement by Khosa, Higher Education Minister Blade Nzimande, and the South African Communist Party (SACP) in receiving kickbacks. These alleged kickbacks were supposedly connected to a tender contract, a claim vehemently denied by Khosa.

NSFAS Board Response

Expressing gratitude for Khosa voluntary leave, the NSFAS Board views it as a commendable step towards upholding corporate governance, transparency, and accountability. Importantly, the Board emphasizes that the leave should not be construed as an admission of guilt.

Independent Investigation Initiated

In response to the allegations, the NSFAS Board has taken a decisive stance by appointing an independent legal firm to investigate the veracity of the claims against Khosa. The selected firm will be announced soon, with a mandate to submit their findings within 30 days.

Commitment to Diligence and Integrity

The Board reassures the public of its commitment to handle the situation with diligence and integrity. It affirms ongoing collaboration with stakeholders in the post-school education and training sector to ensure a smooth start to the 2024 academic year.

OUTA Response and Call for Minister Nzimande Action

OUTA welcomes Khosa decision and expresses the expectation of a genuinely independent investigation. The organization reiterates its call for Minister Blade Nzimande to follow suit or face removal by President Cyril Ramaphosa. Minister Nzimande, however, denies all allegations and contemplates legal action against OUTA.

Investigation into Tender Irregularities

The corruption allegations are rooted in an investigation by Werksmans Attorneys, focusing on irregularities related to Bid NO. SCMN022/2021, which involved the appointment of service providers for the NSFAS direct payment system. The findings revealed possible relationships and conflicts of interest among key individuals, including former CEO Andile Nongogo.

Conclusion

As NSFAS grapples with corruption allegations, the decision by Chairperson Ernest Khosa to take leave marks a significant step toward transparency. The initiation of an independent investigation underscores the commitment of the NSFAS Board to address the allegations with diligence and integrity, paving the way for accountability within the organization. The unfolding events also raise questions about the broader implications for the Higher Education Minister and underscore the urgent need for a comprehensive review of governance practices within NSFAS.