By Lehlohonolo Lehana.
eZaga Holdings (eZaga) has refuted allegations have been made against the company, regarding its role in the National Student Financial Aid Scheme (NSFAS) payment programme and the subsequent cancellation of the tender to the four Fintechs appointed to disburse payments to students.
eZaga Holdings (eZaga), is one of the four fintech providers that were selected by the NSFAS.
In a statement, the company said, “the damage being caused to our industry reputation, credibility and public perception is insurmountable. While we remain committed to addressing these allegations transparently and with the utmost integrity, our ability to do so hinges on obtaining access to the report in question.”
“eZaga conducts its business with the utmost integrity and in full compliance with all relevant laws and regulations. We are dedicated to providing quality services and solutions that benefit students and the South African education system as a whole.”
Due to recent developments over the past week, eZaga is considering the possibility of taking legal action against NSFAS in order to obtain the report and address any potential harm to our reputation caused by these allegations. It is regrettable that NSFAS has not yet provided eZaga with the report, which could potentially result in significant financial difficulties for students, read the statement.
“Furthermore, this situation is hindering eZaga’s ability to pursue legal remedies, leaving us in a state of uncertainty. eZaga once again extends an invitation to NSFAS to share a copy of the report. If the report’s integrity is unquestionable, there appears to be no reason for NSFAS to withhold it, and we strongly urge them to do so as this will ultimately serve the interest of the public and most importantly the interest of the students.”
Regarding the specific allegations:
“Possible relationship” with Nongogo: The allegations of a possible relationship between Andile Nongogo and eZaga are unfounded. We want to clarify that our interactions with Nongogo were conducted professionally and in accordance with the terms of our contract. The suggestion that the relationship was collusive in nature is devoid of substance. We have always acted in the best interests of the students and the education system.
Allegations of NSFAS not conducting their due diligence: eZaga submitted a compliant tender to NSFAS as required. Any alleged failure on NSFAS’s part to conduct a due diligence is their responsibility and not ours. To the best of our knowledge, a due diligence process was indeed carried out. During our presentation to the NSFAS Bid Adjudication Committee (BAC), we were asked to demonstrate our technical capabilities to meet the tender requirements. This request unequivocally indicates that the BAC did perform due diligence, contrary to some media reports suggesting otherwise regarding our technical ability to fulfill our contractual obligations.
Bid evaluation: We were awarded this contract through a competitive bidding process, and we did not have any influence over the selection process. We fully cooperated with NSFAS during the procurement process too. We did not have any undue influence on the selection of the winning bidders and had no prior relationship with any NSFAS officials.
“As we understand the procurement process, the board of NSFAS acts on recommendations from the BAC. The Board in turn passes a resolution, as a collective body, to award contracts. The suggestion that Nongogo awarded the contract to eZaga on the basis that the company was hand-picked, is false. eZaga once again strongly denies any association with or connection to Nongogo before the tender was awarded. eZaga was awarded the tender having met all the necessary tender specifications and has consistently delivered on these requirements.”
Tender period: The NSFAS direct payment programme contract awarded to eZaga is for a period of five years and not 20 years as reported. This reported exaggeration is no doubt intended to sensationalise the issues.
NSFAS Direct Payment Programme versus eZaga Payment Programme: Numerous media outlets and other stakeholders continue to incorrectly refer to the NSFAS Direct Payment Programme as the eZaga Payment Programme. eZaga has made efforts to rectify this error by informing those who are reporting on it incorrectly. It is important to clarify that eZaga is one of the four fintech companies chosen to facilitate payment disbursements, and the official name of the programme should exclude the term ‘eZaga’.
eZaga remains committed to its mission of supporting education and students in South Africa.
“We are open to further inquiries and investigations to clarify any misunderstandings or address any issues that have arisen. Our priority is to contribute positively to the education system and the future of South African students, concluded the statement.”