Ernest Khosa, the Chairperson of NSFAS, recently discussed the findings of an investigation into the direct payment service providers bid process at a media briefing. The investigation discovered irregularities and conflicts of interest during the selection process, including a lack of feasibility study and modifications to bid specifications. The NSFAS Board has taken actions such as offering the CEO a chance to explain why his contract should not be terminated and initiating disciplinary inquiries. Despite these issues, NSFAS remains dedicated to providing financial assistance to students from low-income and working-class backgrounds.
What were the findings of the investigation into the direct payment service providers bid process at NSFAS?
The investigation into Bid NO. SCMN022/2021 found irregularities and conflicts of interest during the selection process. The lack of feasibility study for the direct payment system and modifications to the bid specifications were discovered. The investigation also revealed a potential conflict of interest in selecting the four fin-tech service providers and that the CEO played an active role in presenting proposals to the Bid Evaluation Committee. The NSFAS Board has taken actions, including offering the CEO a chance to explain why his contract should not be terminated and initiating disciplinary inquiries.
Investigation Outcome on Allegations Surrounding Direct Payment Service Providers
Ernest Khosa, the Chairperson of the National Student Financial Aid Scheme (NSFAS), recently spoke at a media briefing about the results of an investigation concerning allegations related to the selection of direct payment service providers. Werksmans Attorneys and Advocate Tembeka Ngcukaitobi were responsible for conducting the investigation, which was prompted by accusations of conflicts of interest involving NSFAS CEO, Andile Nongogo.
Established in 1999, NSFAS offers financial support to eligible students at public universities and TVET colleges. The organization has expanded significantly over the years, making it essential to maintain transparency and accountability. NSFAS currently serves 1.1 million students with a budget of 47.6 billion in 2023.
Findings of the Investigation and the Bid Process
The investigation focused on Bid NO. SCMN022/2021, which was issued and advertised on January 25th, 2022, with a deadline for submissions on February 25th, 2022. The bid sought to appoint four service providers to facilitate the direct payment of allowances to students. The goal of the investigation was to determine if there were any irregularities or conflicts of interest during the selection process.
Several issues were discovered during the investigation, including the lack of a feasibility study for the direct payment system and modifications to the bid specifications that necessitated further examination. The report also found that Nongogo played an active role in presenting proposals to the Bid Evaluation Committee (BEC), which goes against public procurement procedures. Additionally, the investigation revealed a potential conflict of interest in selecting the four fin-tech service providers.
Actions Taken by the NSFAS Board in Response to the Findings
In light of these findings, the NSFAS Board has resolved to contact Nongogo and offer him a chance to explain why his contract should not be terminated. Moreover, the Board will initiate disciplinary inquiries for all staff members involved in any wrongdoing and inform the four direct payment service providers that their contracts will be nullified. The Board also plans to reassess the Supply Chain Management (SCM) Policy to ensure it aligns with National Treasury Regulations and Policies.
Despite the issues identified in the report, the NSFAS Board remains dedicated to transforming the organization into a more efficient and effective provider of financial assistance to students from low-income and working-class backgrounds. This commitment includes addressing student accommodation concerns and preparing to announce the NSFAS application process for the 2024 academic year.
In his closing remarks, Chairperson Khosa expressed gratitude to the Minister of Higher Education, Science, and Innovation, Dr. Blade Nzimande, for his unwavering support and guidance. He also thanked the investigators, NSFAS Board Members, and devoted staff members for their efforts. Furthermore, he acknowledged the collaboration of vice-chancellors and TVET college principals in tackling student issues.
The NSFAS Board will continue to prioritize the principles of accessibility, transparency, affordability, reliability, and authenticity in its operations, ensuring the organization remains a dependable source of financial aid for students in need.
1. What is NSFAS?
NSFAS stands for National Student Financial Aid Scheme. Established in 1999, it offers financial support to eligible students at public universities and TVET colleges.
2. What was the recent investigation at NSFAS about?
The recent investigation focused on the bid process for direct payment service providers. Irregularities and conflicts of interest were discovered during the selection process, including a lack of feasibility study and modifications to bid specifications.
3. Who conducted the investigation?
Werksmans Attorneys and Advocate Tembeka Ngcukaitobi conducted the investigation.
4. What were the issues discovered during the investigation?
Issues discovered during the investigation included a lack of feasibility study for the direct payment system, modifications to bid specifications that necessitated further examination, and potential conflicts of interest in selecting the four fin-tech service providers.
5. What actions has the NSFAS Board taken in response to the investigation findings?
The NSFAS Board has offered the CEO a chance to explain why his contract should not be terminated and initiated disciplinary inquiries for all staff members involved in any wrongdoing. The Board also plans to reassess the Supply Chain Management Policy.
6. What is NSFAS’ commitment to providing financial assistance to students?
Despite the issues identified in the investigation, NSFAS remains dedicated to providing financial assistance to students from low-income and working-class backgrounds.
7. What other issues is NSFAS addressing?
NSFAS is also addressing student accommodation concerns and preparing to announce the NSFAS application process for the 2024 academic year.
8. What principles does NSFAS prioritize in its operations?
NSFAS prioritizes the principles of accessibility, transparency, affordability, reliability, and authenticity in its operations.
