NSFAS

Minister of Higher Education, Science and Innovation, Professor Blade Nzimande, has assured South Africans that he has never used any money from any of his department’s entities to fund the South African Communist Party (SACP), as suggested in a report by the Organisation Undoing Tax Abuse (OUTA).

Addressing a media briefing in Pretoria on Monday, the Minister refuted allegations that he received personal kickbacks from service providers to the National Student Financial Aid Scheme (NSFAS) or any of the other entities falling under his departments.

His assertions follow a report by OUTA alleging that service providers appointed to administer the NSFAS’ new direct payment system paid him millions of rands in kickbacks.

The report also alleges that payments were made to NSFAS board chair Ernest Khosa as well as at least R1 million to Nzimande’s party, the South African Communist Party (SACP).

“I therefore wish to dismiss this baseless insinuation by OUTA, some organisations, including some sections of the media, that I as Minister was involved in some form of corruption at NSFAS. These are all lies that emanate from a malicious fight back campaign. My conscience is clear, and I have nothing to hide or fear.

“As stated in my statement on 5 January, I reserve my rights to take the necessary legal action and I have voluntarily decided that I am going to subject myself to the relevant legal processes and ethics bodies of the African National Congress (ANC) and the SACP,” the Minister said.

The Minister highlighted his track record in fighting corruption at NSFAS and Technical Vocational Education and Training (TVET) colleges.

“My fight against corruption and maladministration dates back to the appointment of the Administrator at NSFAS where disciplinary processes were initiated against some employees following the discovery of some wrongdoing and financial misconduct by these employees.

“With the current NSFAS Board, I have supported their initiatives to deal with ghost students who were benefiting from the scheme irregularly. I also directed the Board to implement the recommendations of the Werksman Report, without fear not any favour. Part of these recommendations is the termination of the contracts of the direct payment service providers,” Nzimande said.

He noted that the SACP has already made its stance known on the false allegations contained in the OUTA statement and rejected them.

“I also wish to place it on record that I do a lot of party-political fundraising, especially for the South African Communist Party as is the case I am sure with leaders of all our political parties. 

“However, with the strict guidance from the SACP, I am not permitted to raise funds from entities under our departments or knowingly from service providers in that space.

“As Minister, I also wish to remind the country that I have absolutely no role or direct influence in determining the allocation of training funds by any of the Sector Education and Training Authorities (SETAs), including the Services SETA that is being mentioned in the aforementioned statement,” he said.

Nzimande emphasised that the allegations against him and the attacks on the chairperson of the NSFAS board are part of a nefarious fight-back campaign that is linked to success and measures to fight corruption and ensure clean governance at NSFAS.

“This campaign includes threats to the life and person of the NSFAS Chairperson. You would recall that a finding was made by Werksmans Attorneys that the appointment of four direct payment service providers was irregular and that in line with the recommendations of the Werksmans report, the contracts of these services were to be terminated and that in doing so, we had to ensure that the students are not affected negatively.

“It is our view therefore that the leaked recordings are part of a nefarious fight-back campaign that is meant to undermine and frustrate the decision of the NSFAS Board to start with the legal proceedings to terminate the contracts of these four direct payment solution service providers, as recommended by the Werksmans report,” the Minister said.

He said the publishing of this report and leaking of the recording is calculated to disrupt the smooth start to the academic year and have no regard for the plight and well-being of poor and working class students.

As part of his oversight responsibilities over NSFAS, the Minister will on Wednesday meet the Board of NSFAS to receive progress on the 2024 application process, the finalisation of the 2023 disbursements, the implementation of the accommodation pilot project and the phased implementation of the Comprehensive Funding Model, particularly the funding of the missing middle through the NSFAS Loan Scheme.

“I wish to assure the people of our country that I stand firm on my commitment to rooting out corruption and ensuring clean governance at NSFAS and all the entities under my departments and will not allow any organisation or individual to distract me from this task.

“I further wish to assure the people of our country and in particular, the students and stakeholders in our Post School Education and Training sector that I remain committed to ensuring that we have a smooth start to the 2024 academic year. I will be having the first of two press conferences later this week to inform the country and our stakeholders on our preparedness and readiness for the start of the 2024 academic year,” Nzimande said. – SAnews.gov.za

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