Nzimande corruption claims 'proves nothing is sacred in ANC' - Steenhuisen

His remarks come after the Organisation Undoing Tax Abuse (OUTA) revealed leaked recordings which exposed corruption allegations involving Minister Blade Nzimande and National Student Financial Aid Scheme chairperson Ernest Khosa.

According to OUTA, service providers awarded multi-million rand tenders to administer direct payment to students and allegedly paid kickbacks to Khosa, Nzimande and the South African Communist Party in return for tenders and protection for service providers.  

Steenhuisen says OUTA's leaked recordings have given the public a clear picture of why NSFAS's direct payment tenders were awarded to “unknown” companies.

In August, OUTA claimed that four companies contracted by NSFAS to pay allowances to students directly were not registered financial service providers.

"These revelations demonstrate that nothing is sacred to the ANC government. Instead of supporting students who are working hard to rise above hardship in order to build a better future for themselves and our country, the ANC only sees another opportunity to loot.

"And make no mistake about it: the ANC’s NSFAS corruption has not been a victimless crime. The awarding last year by NSFAS of direct payment tenders to companies with no proven track record has resulted in students being charged exorbitant fees for every transaction.

"Thanks to the recently released recordings, we now know why these lucrative tenders were awarded to companies no one had ever heard of: in exchange for kickback payments to Nzimande, Khosa and the SACP.

"Every time a student uses their NSFAS card, they are effectively forced to help fund Nzimande’s corrupt scheme. But the scandal does not end there. There are also serious questions swirling around another set of tenders awarded by NSFAS, to manage student accommodation."

Steenhuisen also accused President Cyril Ramaphosa “of taking the cowardly way out” whenever new evidence of corruption emerged against his ministers.

"Instead of firing Nzimande and Khosa, he has remained silent, while the ANC has meekly suggested that Nzimande may appear before its so-called integrity committee.

"The Constitution spells out that only the president has the responsibility to act against corrupt cabinet ministers.  When a minister commits corruption or undermines the cabinet, it is the job of a real leader to deal with that person decisively.

"Ramaphosa cannot outsource that responsibility to some toothless committee populated by ANC cadres, many of whom are just as tainted as the person they are supposed to investigate. The President’s innate cowardice is about to do great damage to the higher education sector, just like his failure to lead has worsened load shedding, unemployment and crime. Since Ramaphosa cannot do so, the DA will step in to lead."

Meanwhile, the African Transformation Movement has added its voice to calls for Nzimande’s head to roll.

ATM Spokesperson Zama Ntshona said: "ATM calls for an immediate and thorough investigation by relevant authorities, including the Special Investigating Unit, Public Protector, SARS, and the Auditor-General's office. The brazen acts of corruption exposed in these recordings warrant not only a change in leadership but also a comprehensive examination of the broader higher education sector to root out any further malfeasance."

Last year, NSFAS CEO Andile Nongogo was sacked after he was implicated in alleged tender irregularities involving R37 million.

In August, the NSFAS board appointed Werksman’s Attorneys and Advocate, Thembeka Ngcukaitobi, to investigate alleged irregularities in the awarding of contracts for the direct payment system.

Students, supported by civic organisations and political parties, have criticised the system, which they said led to delays in the payment of student allowances.

The fund runs a budget of nearly R50 billion, servicing over one million students across the country's universities and colleges.

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