SIU And NSFAS Applaud Western Cape High Court Decision. The Special Investigating Unit (SIU) and the National Student Financial Aid Scheme (NSFAS) have expressed satisfaction with the recent ruling by the Western Cape High Court. The court dismissed an application by Ezaga Holdings, which sought to block the implementation of the Werksmans Attorneys report. The application was dismissed with costs.
Background Of The Case
Ezaga Holdings was one of the service providers contracted to disburse funds to NSFAS beneficiaries. However, following the recommendations of the Werksmans Attorneys report, NSFAS administrator Freeman Nomvalo terminated the contracts of Ezaga Holdings and three other service providers: Coinvest Africa, Norraco Corporation, and Tenet Technologies. These terminations were based on findings that the companies were appointed irregularly.
Court Ruling
On June 12, the Western Cape High Court ruled that there was no urgency in the application brought by Ezaga Holdings. This decision came after a review application to set aside Ezaga Holdings’ appointment as a service provider had been finalized. Judge Thandazwa Ndita ordered Ezaga Holdings to pay the legal costs of NSFAS and the SIU, including the costs of two counsels.
Claims By Ezaga Holdings
In their court papers, Ismail Ally, COO of Ezaga Holdings, argued that NSFAS had unlawfully terminated the Service Level Agreement (SLA). Ally contended that only the courts have the authority to invalidate or uphold such agreements, not NSFAS.
Court Response To Claims
The court, however, did not accept the claims made by Ezaga Holdings. The judgment stated:
“Having read the papers filed on record, and having heard the argument from the parties’ respective counsel, it is hereby ordered that the matter is struck off the record due to lack of urgency. The applicant is ordered to pay the first respondent’s costs, including two counsel.”
Reactions From SIU And NSFAS
Both the SIU and NSFAS welcomed the High Court’s decision. They emphasized that the judgment supports the implementation of the Werksmans Attorneys report, which aims to address wrongdoing and enhance controls within the public procurement process.
“The SIU and NSFAS welcome the decision of the High Court, as it clears the way for the implementation of the Werksmans Attorneys’ report and the outcomes and consequence management to correct wrongdoing and further tighten the controls within the public procurement process,” they stated.
Additional Legal Developments
Norraco Corporation, another service provider disbursing allowances to NSFAS beneficiaries, was also involved in the matter. They filed a counter-application in agreement with Ezaga Holdings’ position. However, this counter-application was likewise dismissed with costs.
Conclusion
The Western Cape High Court’s decision marks a significant step towards ensuring transparency and accountability within NSFAS’s operations. The SIU and NSFAS remain committed to implementing the recommendations of the Werksmans Attorneys report and strengthening the public procurement process to prevent future irregularities.