JOHANNESBURG, 24 October– The National Student Financial Aid Scheme (NSFAS) has announced the termination of CEO Andile Nongogo’s contract in the wake of severe IT issues and payment delays that have plagued the organization. The decision to remove Nongogo was disclosed by Board Chairperson Ernest Khosa during a session with Parliament’s finance watchdog, Scopa, on Tuesday, where various matters, including audits and Special Investigating Unit (SIU) investigations, were discussed.
Scopa was also briefed by Higher Education Minister Dr. Blade Nzimande on investigations related to the National Skills Fund and NSFAS. During the meeting, Minister Nzimande and NSFAS board and management acknowledged delays in compiling annual financial statements, shedding light on the challenges facing the organization.
The SIU, in its report to Scopa, detailed its investigations into serious maladministration associated with NSFAS operations and instances of improper or unlawful conduct by officials. The inquiries also uncovered significant flaws and weaknesses in the IT systems of NSFAS, exacerbating the operational difficulties.
Ernest Khosa, the Chairperson of the NSFAS board, confirmed the termination of CEO Andile Nongogo’s contract, citing a breach of policies and trust as the basis for this action. Khosa revealed, “Just last night, the board of NSFAS took a decision to terminate the contract of the CEO on the basis and grounds of breach of our policies and breach of trust.”
Minister Nzimande acknowledged that a significant portion of the challenges faced by NSFAS stemmed from the implementation of a new payment scheme, which represented a substantial shift in policy. This change transitioned the organization from a loan-based system to a bursary-based system and raised the income threshold for eligibility, making the transition complex and fraught with difficulties.
The dismissal of CEO Andile Nongogo comes at a crucial juncture for NSFAS, as the organization grapples with ongoing issues in its operations. The decision reflects the gravity of the situation and the commitment to addressing the challenges faced by NSFAS in delivering financial aid to South Africa’s students.
As the organization navigates these significant changes and strives to improve its IT systems, South Africans are closely watching for signs of improvement and efficiency within NSFAS, with the hope that deserving students will receive the support they require for their education.