NSFAS News

6 NSFAS Employees Involved In Fintech Contracts

Published

3 weeks ago

August 25, 2024

6 NSFAS Employees Involved In Fintech Contracts. The National Student Financial Aid Scheme (NSFAS) is embroiled in a significant legal dispute involving its direct service provider contracts. These contracts, tied to the distribution of student allowances, were terminated following allegations of irregular appointments and potential corruption. This article delves into the details of the case, the legal actions taken, and the implications for those involved.

NSFAS And Its Role

NSFAS is a government bursary scheme in South Africa that provides comprehensive financial aid to deserving students enrolled in universities and Technical and Vocational Education and Training (TVET) colleges. This aid includes tuition fees, registration costs, and allowances for food, accommodation, and learning materials. In 2022, NSFAS introduced a direct payment system for allowances, facilitated by four fintech service providers: eZaga, Coinvest, Norocco, and Tenetech.

Challenges With The Direct Payment System

The implementation of the direct payment system was plagued with challenges. Students across the country reported issues with receiving their allowances, leading to widespread dissatisfaction. In response, student leaders in the Western Cape organized a march on parliament, delivering a memorandum of demands to the Department of Higher Education, Science, and Innovation.

Investigation Into Irregular Appointments

In light of the challenges, an investigation was commissioned, led by Werksmans Attorneys, focusing on Bid NO. SCMN022/2021, which involved the appointment of the four service providers. The investigation uncovered potential corruption, highlighting possible relationships between key NSFAS officials, including former CEO Andile Nongogo, and the fintech companies.

Findings And Recommendations From The Werksmans Report

The Werksmans report revealed that there was active involvement of the former NSFAS CEO in the Bid Evaluation Committee, raising concerns about conflicts of interest. The report recommended the termination of the service providers’ contracts. However, this process has been complicated by legal challenges, delaying the termination.

Legal Disputes And Court Rulings

NSFAS faced legal challenges from the service providers, particularly eZaga, which argued that the bursary scheme had not followed proper procedures in terminating the contract. An interim judgment favored eZaga, requiring NSFAS to continue adhering to the contractual terms until a competent court or the Special Tribunal sets aside the contract. NSFAS has since appealed the decision, citing the need to maintain governance structures and ensure a smooth academic year.

Implication Of NSFAS Employees

The Werksmans report implicated six NSFAS employees who were involved in the bid committee responsible for the irregular appointments. The employees faced charges ranging from negligence to contravention of the Supply Chain Management Policy. Preliminary hearings were conducted, and formal charges were issued in June 2024. Since then, two employees have resigned, and one has entered into a mutual separation agreement. The remaining employees, represented by NEHAWU, are currently involved in ongoing disciplinary proceedings.

Conclusion

The ongoing legal battle between NSFAS and its service providers highlights significant governance and procedural challenges within the organization. The involvement of senior NSFAS officials in the controversial fintech contracts has led to a complex and protracted legal dispute. As the situation continues to unfold, the outcomes of the appeals and disciplinary actions will have far-reaching implications for NSFAS, its employees, and the broader Post-school Education and Training (PSET) sector.

NSFAS News

When We Can Apply For NSFAS In 2025

Published

1 day ago

September 15, 2024

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When We Can Apply For NSFAS. The National Student Financial Aid Scheme (NSFAS) is a beacon of hope for many students seeking financial support to pursue higher education in South Africa. As we look forward to the 2025 academic year, it’s crucial for prospective students to be aware of the application timeline and eligibility requirements to maximize their chances of receiving funding. Here’s everything you need to know about applying for NSFAS in 2025.

NSFAS Application Opening Date for 2025

The NSFAS application period for the 2025 academic year is set to begin on Tuesday, 17 September 2024. This is the key date when the application portal will open, allowing eligible students to submit their applications. It’s advisable to apply as early as possible to ensure your application is processed promptly and to avoid any last-minute issues.

Eligibility Requirements

Before diving into the application process, it’s important to determine if you meet the NSFAS eligibility criteria. Here’s a breakdown of the requirements:

Citizenship: Applicants must be South African citizens.
Institution Registration: You must be registered or planning to register at a public university or TVET college.
Household Income: Your household’s combined annual income must not exceed R350,000.
Academic Requirements: You should meet the academic requirements of the institution you wish to attend.
Previous Funding: You must not have previously received NSFAS funding.
Postgraduate Studies: NSFAS does not fund postgraduate studies. If you are looking for funding for a postgraduate course, consider applying through the National Research Foundation (NRF).

Who Does Not Qualify?

While NSFAS aims to support as many students as possible, there are specific groups who are not eligible for funding:

Household Income: Students from households with an annual income exceeding R350,000 are not eligible.
Existing Funding: Students who have already received full study funding from other bursary sources cannot apply.
Second Undergraduate Degree: If you already have an undergraduate qualification and wish to pursue a second one, you cannot apply.
Private Institutions: Students enrolled in private higher education institutions are ineligible.
Non-Approved Qualifications: If your qualification is not approved by the Department of Higher Education and Training (DHET) or is not SAQA accredited, you cannot apply.
Second Certificate: Students who have obtained a certificate qualification and wish to study for a second certificate are not eligible.

What Does NSFAS Cover?

NSFAS provides a comprehensive bursary package that includes:

Registration Fees: Full coverage of your registration fees.
Tuition Fees: Payment of your tuition fees.
Book Allowance: Financial support for purchasing books and other academic materials.
Accommodation: Coverage for accommodation or living expenses.

How to Apply

To apply for NSFAS funding for 2025, follow these steps:

Prepare Your Documents: Ensure you have all necessary documents ready, including proof of income, identity documents, and academic records.
Visit the NSFAS Website: Go to the official NSFAS website on 17 September 2024 to access the application portal.
Complete the Application Form: Fill out the application form with accurate information. Be sure to double-check all details before submitting.
Submit Your Application: Once you have completed the form, submit it through the NSFAS portal. You may need to upload supporting documents as part of the application process.
Track Your Application: After submission, monitor the status of your application through the NSFAS portal to stay updated on any additional requirements or next steps.

Conclusion

The NSFAS application for the 2025 academic year opens on 17 September 2024, and it’s essential for prospective students to prepare and apply early. Understanding the eligibility requirements and the details of what NSFAS covers will help you navigate the application process smoothly. By ensuring you meet the criteria and submitting a complete application, you can take a significant step towards securing the financial support needed to achieve your academic goals. Good luck with your application, and may your journey towards higher education be a successful one!