By Lehlohonolo Lehana.
The Labour Court in Johannesburg dismissed former NSFAS CEO Andile Nongogo urgent application challenging the termination of his contract by the student funding scheme.
Nongogo was dismissed last year following a review of his conduct. He was found to have been “derelict in his duties” regarding the irregular appointment of service providers.
Acting judge Maletsatsi Mahalelo ruled on Monday that NSFAS disciplinary policy governs, formalises and standardises the disciplinary process for all employees to ensure they are treated fairly and consistently, there seemed to be a conflict between Nongogo’s employment contract and the disciplinary code.
Mahalelo explained: “The CEO cannot be disciplined by management. He may only be disciplined by the board, as the powers to appoint and dismiss him lie solely with the board.
“This on its own goes to show that the procedures set out in the disciplinary policy do not make any provision for a disciplinary process in relation to a CEO.
“The plain reading of the contract of employment also makes it clear that the disciplinary code is not specifically incorporated into the applicant’s contract of employment.”
“The applicant has therefore failed to make out a case for the relief it seeks in the notice of motion,” concluded Mahalelo.
Nongogo was slapped with costs for a failed application to strike out certain paragraphs in the NSFAS board’s answering affidavit.
Nsfas spokesperson Ishmael Mnisi says Nongogo asked the court to strike out certain paragraphs in the Werksman Attorney’s report, which implicated him of irregular conduct during the appointment of direct payment service providers.
“The decision by the court vindicates the Nsfas board in terminating Nongogo’s contract of employment following his irregular involvement in the appointment of the direct payment service providers.
“The Nsfas board views the Werksmans Attorneys report as a necessary and important measure to propel NSFAS to a much more elevated level of consciousness to fight corruption and the capture of NSFAS by some unscrupulous people masquerading as business people.”
Mnisi added that the report also served as a measure for Nsfas to strengthen its internal supply chain management systems and controls.
“Following this groundbreaking judgment, Nsfas will vigorously continue with its legal process towards the termination of contracts of direct payment service providers.
“The termination of the direct payment service providers will be handled with due care not to disrupt the disbursement of the allowances to students in the 2024 academic year. Nsfas will now focus all its efforts on its immediate task of preparation for the seamless beginning of the 2024 academic year.”
The court’s decision carries substantial implications for the NSFAS, a pivotal body in the realm of student funding.
The outcome also raises questions about the future leadership of the NSFAS and its ability to efficiently manage student financial aid in South Africa.