ActionSA guns for Nzimande over NSFAS stink

ActionSA says it will open criminal charges against higher education, science and technology minister Blade Nzimande and NSFAS board chairperson Ernest Khosa for their alleged implication in corruption at the Fund.  

This comes after the Organisation Undoing Tax Abuse (Outa) released a report with information on how the two were allegedly involved in a kickback scheme related to contracts at the National Financial Aid Scheme (NSFAS). 

In its report, Outa detailed how a series of recordings revealed that millions of rands were allegedly paid to Nzimande and Khosa by a service provider as a kickback and how Khosa met up with service providers to concoct a plan that would deal with potential threats that could expose their dealings. The corruption is believed to be linked to the four fintech companies that were awarded contracts to distribute NSFAS allowances to students.  

ActionSA said in a statement that it believed the information presented in Outa’s report indicated blatant criminal conduct in terms of the Prevention And Combating Of Corrupt Activities Act, 2004 and would report the case at the Lyttleton police station in Centurion, Pretoria on Tuesday.

“Consequently, this places the responsibility on the South African Police Service (SAPS), as the designated law enforcement agency, to conduct a comprehensive investigation and ensure that every implicated person is identified and held accountable to the fullest extent of the law,” the statement read. 

“ActionSA is committed to ensuring that justice prevails for the nearly 1-million students who suffered as a consequence of this fraud and the corrupt dealings involving a syndicate of corrupt tenderpreneurs, government officials and public office bearers.” 

Nzimande has since distanced himself from the allegations. 

Meanwhile, African Transformation Movement (ATM) president Vuyolwethu Zungula has written to the public protector Kholeka Gcaleka requesting her to investigate the allegations against Nzimande and Khosa, labelling them as troubling. 

In a letter, Zungula said the gravity of the allegations involving the minister demanded an urgent and comprehensive investigation by the public protector’s office.  

“The recordings and investigative reports provided by Outa indicate a systemic breakdown within NSFAS, affecting the disbursement of funds meant for thousands of students,” he wrote. 

“The delays in student allowances and the apparent manipulation of service provider contracts underscore the urgent need for intervention to safeguard the interests of the vulnerable students, who rely on NSFAS for their education. Furthermore, the shocking revelation of minister Blade Nzimande and NSFAS chairperson Ernest Khosa’s alleged embezzlement of R1m from student funds, as discussed in the leaked recordings, is a matter of utmost concern.”

Zungula said such actions, if proven true, not only violated the trust placed in public officials but also compromised the very purpose of NSFAS and its commitment to supporting students in need. 

He requested that the public protector specifically focus her investigation comprehensively the reasons behind the delays in the disbursement of student allowances and examine whether these delays were a result of systemic issues within NSFAS, scrutinise the awarding of contracts to service providers, probe the broader financial mismanagement issues and investigate the allegations of embezzlement by Nzimande and Khosa, as discussed in the leaked recordings.   

“In light of the severity of these allegations, I earnestly request that the public protector’s office initiates a thorough and impartial investigation into the entire matter. This investigation should not only focus on the actions of minister Blade Nzimande and the NSFAS chairperson but should also delve into the broader issues of financial mismanagement irregularities in service provider contracts and any other forms of corruption within NSFAS,” the letter read. 

sibiyan@sowetan.co.za