NSFAS board chair Ernest Khosa takes leave of absence amid corruption allegations.

By Lehlohonolo Lehana.

National Student Financial Aid Scheme (NSFAS) embattled board chair Ernest Khosa has informed the board that he will take leave of absence to allow inquiry into a series of recordings alleging that there’s a corruption scheme operating within the Higher Education Department and NSFAS.

The recordings links Khosa and the Minister of Higher Education, Blade Nzimande and others to rampant corruption in tender procurement for higher education.

Outa says a whistleblower has shared two recordings allegedly of talks between Khosa, Thula Ntumba and an unnamed third party, in which they discuss kickbacks, mismanagement and political meddling in NSFAS, which have brought the scheme to its knees. 

In a statement released this evening the board said, “It welcomes the notice and grounds expressed by the board chairperson to take a leave of absence.”

“The board instantly informed the Minister of Higher Education Blade Nzimande on the notice by the board chairperson.”

The statement further said, “The board would like to reiterate that Khosa’s leave of absence should not be interpreted as admission of guilt however a responsible decision to advance good governance, transperancy and accountability.

“The resolved immediately to appoint the independent legal firm to look into veracity of allegations against the board chairperson.”

Khosa became a non-executive member of the South African Civil Aviation Authority (SACAA) board on 1 April 2018. That same year, Nzimande, then the Minister of Transport, appointed him as chairperson of SACAA’s board. In December 2020 Nzimande, then Minister of Higher Education, installed Khosa as chairperson of the NSFAS board. 

This despite Khosa’s resignation in 2005 as CEO of the Mpumalanga Economic Empowerment Commission (MEEC) – now known as the Mpumalanga Economic Growth Agency – just before a forensic audit report into widespread systematic fraud, corruption and mismanagement was scheduled to be released by PwC detailing his role in irregular multimillion-rand loans to MEEC board members and contracts to companies linked to senior managers at the commission. 

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