By Lehlohonolo Lehana.
eZaga Holdings (eZaga), one of the affected fintech firms, says it is committed to continue assisting students by paying their monthly grants on time, despite the fact that its contract with NSFAS has been terminated.
Fullview understands National Student Financial Aid Scheme (NSFAS) will only cancel the contracts of the four fintech firms pending legal review, which has yet to take place.
NSFAS has said as of earlier this month that they will continue having the four fintech companies disburse funds to students throughout the academic year as to minimise interruptions to students, at least until the legal process has been completed.
In October last year, the NSFAS Board of Directors declared that fintech firms eZaga, Narocco, Tenet Technologies and Coinvest contracts will be cancelled after just over four months of sending out funds to students for the NSFAS direct payment system launched in earnest in July last year.
This followed an official investigation launched by the Board which found a conflict of interest between the companies and then-CEO Andile Nongogo. It was alleged that Nongogo had violated the public procurement process when he onboarded the four companies, since he was financially implicated in two of the fintech firms, namely eZaga and Coinvest.
Nongogo was soon dismissed after this was revealed.
In the statement, eZaga said, that it is committed to continue assisting NSFAS students by paying their monthly grants on time.
“One major problem with the previous NSFAS disbursement system, before appointing direct payment providers, was its unreliability and lack of payment security measure in place, often leading to delayed or incorrect payments being made,” the fintech explains, which led NSFAS to introduce the direct payment system to limit inaccuracies and the potential for fraud.
eZaga receives the grant funding directly from NSFAS, which means that if it is still paying grants on time then the contract is either still valid despite official comments from the scheme, or the two companies are working together without a contract.
Despite initially facing reluctant adoption at various institutions, eZaga has steadily established strong working relationships with key stakeholders, including Student Representative Councils (SRCs) and institutional management structures showcasing eZaga’s growing influence and acceptance in these environments
Khutso Mamabolo, President of the SRC at the University of Limpopo, commended eZaga’s responsiveness: “Having someone readily available to address our concerns 24/7 was a game changer. It allowed us to efficiently resolve issues and refocus on our studies. Previously, bureaucratic delays often resulted in extended periods without access to funds.”
eZaga’s strategy focused on stability and efficiency in fund distribution. By working closely with Student Representative Councils (SRC) and students, the company ensured rapid issue resolution. This partnership has been crucial in maintaining consistency and reliability in the distribution of allowances.
Mamabolo added, “Initially, we encountered some minor issues with the system. However, eZaga fixed these glitches quickly to ensure students received their funds on time.”
Khumalo Siyemukela, last year’s SRC president at the University of Zululand said, “Considering the issues we had with NSFAS previously, eZaga innovated in addressing disbursement challenges and were always available to assist us.”
“eZaga was very good at getting us our money to us on time. As long as NSFAS fulfilled their role, we received our grants on time. What really set eZaga apart was their willingness to go above and beyond just transferring funds. When NSFAS payments were delayed, eZaga often helped needy students with food parcels, “he added.
Twanano Hlongwani president of Vaal University of Technology SRC noted, “A common issue was students’ transactions being declined, yet the funds would still be deducted from their accounts. We reported this to eZaga, who promptly resolved the problem.”