Snl24 | EFF welcomes NSFAS’ decision
NFSAS, which has confirmed the termination of contracts.
THE Economic Freedom Fighters Student Command (EFFSC) has expressed approval of the National Student Financial Aid Scheme’s (NSFAS) decision to terminate its relationships with service providers accused of corruption.
NSFAS confirmed it would cease using Coinvest Africa, eZaga Holdings, Naracco Holdings, and Tenet Technology for disbursing student allowances due to allegations of corruption.
This decision was disclosed in a statement signed by NSFAS chief operating officer, Errol Makhubela, dated 11 July.
The termination follows findings by the Organisation Undoing Tax Abuse (Outa), which implicated both the-then minister of higher education, Blade Nzimande, and the former NSFAS board chairman, Ernest Khosa, in contractual irregularities with these providers.
Nzimande had dismissed the allegations that he and Khosa were engaged in corrupt activities in NSFAS deals.Â
NSFAS announced that for the remainder of the 2024 academic year, university students’ allowances would be distributed through their respective institutions.
“This means we will continue with the current arrangement where NSFAS disburses allowances to institutions, which then distribute them to students until the end of the 2024 academic year,” said NSFAS.
The fund also clarified that these changes wouldn’t affect the pilot accommodation process.
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NSFAS emphasised the importance of institutions validating student data before disbursing allowances to ensure that only qualifying students receive the correct amounts.
“NSFAS will continue to disburse allowance and tuition fees to institutions based on the valid registration data received and processed successfully,” the fund said.
The EFFSC spokesman, Masixole Mabhongo, hailed the decision as a significant step towards ensuring accountability and transparency in managing student funds and eliminating any inconvenience to students.
“These providers were not only causing significant delays in disbursing payments but also exploited students by charging them exorbitant transaction fees,” said Mabhongo.
He also highlighted the financial burdens and lack of accountability that students faced with these service providers, noting that funds would sometimes disappear from their profiles without explanation.
The Importance of the DecisionMabhongo emphasized, “The move is essential to safeguarding the future of our nation’s youth and ensuring that every student receives the support they need to succeed in their academic endeavors.”
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