No evidence to support Outa’s graft claims at Nsfas – report

No evidence to support Outa’s graft claims at Nsfas – report

A probe into alleged graft at the National Student Financial Aid Scheme found no evidence to support the claims of corruption against the fund’s former board chair Ernest Khosa.

Ernest Khosa
Facebook/NSFAS

In January, the Organisation Undoing Tax Abuse (Outa) published leaked audios, purportedly between Khosa and services providers linked to the problematic student fees disbursement tender, in which alleged kickbacks related to the multi-million-rand fees disbursement project were discussed.

The organisation reported that Khosa and the services providers were discussing payment to be pocketed the former board chair, Higher Education Minister Blade Nzimande and the political organisation he leads - the South African Communist Party.

On Friday, newly appointed Nsafs administrator Freeman Nomvalo announced he received and published report, which was prepared by Tshisevhe Attorneys Incorporated.

“The Administrator will in due course announce measures to implement the recommendations. The report found no evidence to substantiate allegations made in the Outa report,” said Higher Education spokesperson Veli Mbele.

SOME OF THE RECOMMENDATIONS

  • The Board should be guided by legal opinions from experts in administrative law in order to minimise NSFAS exposure to potential damaging claims;
  • The Board should reprimand Mr Khosa for his actions, which is for discussing the Board and Board decisions with Ntumba and Maluleke, and for failing to inform the Board about such discussions;
  • The Board should expedite the implementation of the remaining recommendations of the Werksmans report and take a decision on how it would implement the termination of the contracts of service providers without prejudice the beneficiaries of the student’s allowances.

Khosa resigned from his position in April, citing threats on his life.

Nzimande subsequently dissolved the entire board and appointed Nomvalo as the administrator.


Meanwhile, OUTA’s Wayne Duvenhage said has described some of the recommendations as “absurd”.

 “There is such a conflict of interest in his conduct and to suggest that he should have just told the board about it is not acceptable to us. He is the chairperson of the board and he should not be entertaining any discussions of the nature that he did with the service providers.

“If these recordings had not been leaked nothing would have happened.”

Duvenhage added that they maintain that Khosa was let off the hook when he was allowed to resign without accounting for the alleged corruption.

“We believe he is in transgression of the Public Funds Management Act, and he should have been fired by the minister and charged by the minister. So, he is being let off the hook very lightly.”

OUTA’s also lamented the delay in implementing the Werksman report that fingered former CEO Andile Nongogo in alleged underhanded dealings with the fees disbursement tender service providers.

Duvenhage said Nzimande also needs to be investigated, but added they would study the report before deciding on their next step.  


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