There are concerns that the current CEO of the National Student Financial Aid Scheme is involved in fraud and corruption. The CEO’s involvement with a Sector Education and Training Authority raised these concerns.
Organisation Undoing Tax Abuse (OUTA) has filed criminal complaints against NSFAS CEO Andile Nongogo and two other individuals for alleged corruption and fraud. Complaints relating to his role with the Services Sector Education and Training Authority (SSETA).
OUTA wants the South African Police Service (SAPS) to investigate Nongogo, Duduzile Mwelase, a senior manager at SSETA, and Anania Baloyi and Ngwenya Baloyi, both from Five Stars Communications and Projects CC (Five Stars). A service provider for the SETA was Five Stars.
The criminal complaints relate to the over-inflation of a specific tender, awarded to Five Star. At the time, Baloyi was the sole member of Five Star, while her son, Ngwenya Baloyi, was the company’s managing director.
Five Star supplied several branded items and related services to SSETA for a fee of R36.962 million, according to OUTA portfolio manager Rudie Heyneke. A tender box costing more than R300,000 was branded by the company.
There are allegations that Five Stars over-inflated their bid for branding the tender box by 8000% and spent R302,010. According to OUTA, NSFAS CEO Andile Nongogo’s signature appears on the invoice, which suggests that he was aware of the quoted price.
Nongogo’s signature appears on the invoice, indicating he was aware of the quoted price. A branded box was delivered to Duduzile Mwelase, the senior manager in charge of SSETA’s brand management, on 12 February 2018. The invoice was paid on 1 March 2023 by Nongogo, who approved payment of R302,010.
On several issues, OUTA requested clarification from SSETA, including proof that the tender box was recorded in the asset register, and at what value. A tender box valued at R9,690 was recorded in the asset register.
According to Heyneke, inflated prices charged by service providers are unacceptable, and companies that charged exorbitant prices, as well as public officials who approved the payment of inflated tenders, should be held accountable.
The OUTA also wants these companies included in National Treasury’s restricted suppliers’ data, which prevents them from doing business with the government.
The NSFAS responds to allegations of corruption made by its CEO
The NSFAS has taken note of OUTA’s actions and assured the public that Nonogogo has no connection to the reported wrongdoings.
Nongogo’s current responsibilities and mandate at NSFAS are unrelated to the alleged transgressions.
The NSFAS is dismayed that members of the media are seeking to link these offenses to NSFAS while Nongogo was the head of SSETA.
Nongogo has been scrutinized by the media since implementing new policies concerning NSFAS allowance payments and student housing.
The NSFAS will implement policies sanctioned by the Board and the shareholders vigorously and will not give in to character assassination attempts.
Additionally, Nongogo has been subjected to numerous text-message attacks. Security measures are currently being taken to counter these attacks.
