NSFAS CEO Andile Nongogo Gets Court Judgment. The Labour Court has rejected the application by former National Student Financial Aid Scheme (Nsfas) CEO Andile Nongogo to challenge the lawfulness and validity of his dismissal.
Nongogo Termination Amid Controversies
In October, the Nsfas board terminated Nongogo’s contract, citing an investigation into allegations related to the appointment of direct payment service providers. This decision followed Nongogo’s placement on special leave in August, triggered by controversies surrounding the scheme’s direct payment contract.
Outa Report Raises Concerns
The Organisation Undoing Tax Abuse (Outa) published a report exposing the “questionable” awarding of the Nsfas direct payment contract. The report implicated Nongogo in a potential conflict of interest regarding the appointment of service providers. Despite calls for suspension during investigations, Nsfas placed Nongogo on special leave as it initiated its own inquiry.
Werksmans Attorneys Report Highlights Issues
A report by Werksmans Attorneys and advocate Tembeka Ngcukaitobi identified a potential conflict of interest in the appointment of fintech service providers. The report also flagged concerns about the lack of thorough due diligence on the service providers.
Labour Court Ruling and Dismissal
On Monday, the Labour Court ruled in favor of the Nsfas board, dismissing Nongogo’s application to declare his termination unlawful. Judge MB Mahalelo also rejected, with costs, Nongogo’s attempt to strike out certain paragraphs in the Werksman Attorney’s report.
Nsfas Board Response
The Nsfas board expressed satisfaction with the court’s decision, stating, “The decision by the court vindicates the Nsfas board in terminating Mr Nongogo’s contract.” The board views the Werksmans Attorneys report as crucial in the fight against corruption and maintaining the integrity of Nsfas.
Strengthening Internal Controls
Nsfas emphasized its commitment to legal processes to terminate contracts with direct payment service providers. The organization aims to handle these terminations carefully to ensure a smooth disbursement of allowances to students in the 2024 academic year.
Conclusion
The Labour Court ruling solidifies the termination of Andile Nongogo contract, marking a significant development in the Nsfas controversy and signaling the board’s commitment to combat corruption and strengthen internal controls.
