By Lehlohonolo Lehana.
Image Supplied.
The National Student Financial Aid Scheme (Nsfas) has placed its CEO, Andile Nongogo, on special leave amid uproar over the scheme’s direct payment contract.
The board announced this decision in a statement on Wednesday.
This comes after a report by Organisation Undoing Tax Abuse (Outa) that four companies contracted by Nsfas to pay allowances to students’ bank accounts directly are not registered financial service providers.
Nongogo, who is the former CEO of the Services Sector Education and Training Authority (SSETA), is implicated in alleged tender irregularities involving R37 million of tax-payers money.
“The allegations relate to his work with the Services SETA and how this may relate to unacceptable conduct in the awarding of bids at Nsfas. Whilst the Board recognises that, in the main, the allegations stem from activities in another organisation, it views them in a very serious light, “the statement read.
“Nsfas runs close to a R50 billion budget which services young people from poor and working-class backgrounds. The board believes that in executing this responsibility, public trust is of paramount importance.”
“In the interest of the image of NSFAS, the Board has resolved to investigate the allegations with a particular focus on the Direct Payment project. During the course of the investigation, the Chief Executive Officer will be on leave of absence.”
Nsfas says their CFO, Masile Ramorwesi, will be acting as CEO until further notice.
The direct payment system has been criticised by students, who claimed there were delays in payments and excessive fee charges.
As a result, higher education institutions have had to deal with student protests as they call on the scheme to address the challenges.