According to Nzimande NSFAS Money Was Used for His Benefit. The Organisation Undoing Tax Abuse (OUTA) recently released voice recordings linking the Chairperson of the National Student Financial Aid Scheme (NSFAS), Ernest Khosa, and Higher Education Minister Blade Nzimande to corruption within the NSFAS direct payment system.
Leaked Recordings Details
The leaked recordings exposed various details, including:
- Alleged payments of millions to the Minister and Chairperson by service providers, with the South African Communist Party (SACP) receiving R1 million.
- Tenders and protection for service providers were supposedly granted in exchange for these payments.
- Meetings involving Khosa and individuals associated with Coinvest directors before the announcement of the former NSFAS CEO being placed on special leave.
- Khosa awareness of the CEO past wrongdoing and his efforts to prevent any repercussions.
- Attempts to manipulate the appointment of a legal firm, Werksmans Attorneys, to handle irregularities in the NSFAS direct payment system.
- Khosa alteration of a letter signed by the former CEO.
- Minister knowledge of relationships with Fintechs and suspicions of phone tracking by investigators.
- Concerns about potential cancellations of service providers’ contracts to avoid implicating Coinvest.
Minister Nzimande Response
Minister Nzimande addressed the allegations in a press briefing, vehemently denying any personal benefit from NSFAS or department funds. He accused OUTA of attempting to tarnish his image and disrupt the start of the 2024 academic year. The Minister emphasized:
“I have never used any money from any of my departments for the purpose of funding the SACP nor have I received any kickbacks from the service providers of NSFAS or any of the other entities falling under my departments.”
Denial and Dismissal
Nzimande dismissed the allegations as baseless insinuations, attributing them to a malicious fightback campaign. He expressed confidence in his integrity and stated that the accusations were fabricated lies.
Government Response and Future Actions
The Department and NSFAS are collaborating with law enforcement to investigate maladministration and corruption allegations. Nzimande revealed plans to terminate contracts with four service providers, addressing concerns raised by OUTA. Calls for the dismissal of the Minister and NSFAS Chairperson have emerged, particularly from student unions and organizations.
The Minister, expressing concern over these calls, highlighted the government’s commitment to student funding and access to post-school education for marginalized communities. He vehemently refuted accusations of stealing money meant for impoverished students.
Conclusion
The situation remains tense as investigations unfold, and the government faces mounting pressure to address allegations and maintain public trust in the education system.
