NSFAS CEO Role in Selecting Companies for Fund Disbursement Investigated

NSFAS CEO Role in Selecting Companies for Fund Disbursement Investigated. The Chief Executive Officer (CEO) of the National Student Financial Aid Scheme (NSFAS), Andile Nongogo, is under scrutiny for actively participating in the selection of companies responsible for disbursing allowances to beneficiaries from the R47-billion fund.

However, Nongogo, who has been suspended, faces the potential termination of his contract due to allegations of facilitating maladministration, which resulted in more than 80,000 students experiencing delays in receiving their allowances.

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Preliminary Findings of the Investigation into Irregular Contracts

NSFAS board chairperson Ernest Khosa revealed the preliminary findings of an investigation conducted by law firm Werkmans Attorneys and advocate Tembeka Ngcukaitobi SC. This investigation focused on the irregular awarding of four contracts for the direct payment of allowances to students. The report highlighted that the appointment of these four firms was irregular, and Nongogo played a significant role in the flawed selection process.

Conflict of Interest and Engagement with Service Providers

The investigation report also pointed to a potential conflict of interest in the appointment of these four financial technology (fintech) service providers. Khosa explained that the board had met with the service providers to discuss the findings, but the report had not yet been shared with these companies.

CEO Opportunity to Defend His Contract

Khosa announced the board’s decision to write to CEO Andile Nongogo, giving him an opportunity to provide reasons why his contract should not be terminated. Nongogo has until Monday to respond to this request.

Scope of the Investigation

The investigation scope extended beyond the CEO involvement and encompassed inquiries into possible conflicts of interest in the appointment of service providers. It also involved a review of NSFAS’s supply chain policies, procedures, and legal compliance within the procurement system.

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Board Support for Direct Payment Solution

Khosa emphasized the board’s satisfaction with the policy decision to implement direct payments to students. This decision was seen as a necessary measure to reduce unauthorized access to beneficiaries’ allowances, address issues related to ghost students, inconsistencies, and delayed allowance payments. The direct payment solution aligns with the Student-Centered Model adopted by NSFAS.