The Organisation Undoing Tax Abuse (Outa) has released two recordings, allegedly involving discussions between Ernest Khosa (Chair of the National Student Financial Aid Scheme – NSFAS), Thula Ntumba, and an unnamed third party. The recordings purportedly reveal discussions about kickbacks, mismanagement, and political interference in NSFAS, leading to rampant corruption in higher education tender procurement. Outa has called for the resignation or removal of Blade Nzimande, the Minister of Higher Education.
In June 2022, NSFAS appointed four service providers, including Coinvest Africa (Pty) Ltd, Tenet Technology (Pty) Ltd, Ezaga Holdings (Pty) Ltd, and Norraco Corporation (Pty) Ltd, with links to the government. Outa claims that this led to the collapse of NSFAS’s payment system to students. The report implicates Nzimande in corruption allegations, as he appointed both the former CEO Andile Nongogo and Khosa to their positions.
The recordings reportedly involve discussions about investigations into corruption, alleged kickbacks for tenders, and protection of service providers. There are also references to political conspiracies, including attempts to remove Nzimande and the board. The discussions suggest attempts to manage the narrative around corruption investigations, with concerns about the possible cancellation of service provider contracts. Additionally, there are claims of financial contributions to the South African Communist Party (SACP) and potential efforts to influence media narratives.
Outa contends that it is unethical for the NSFAS chairperson to meet with service providers to discuss internal matters and seek their input on board decisions. The organization has shared the recordings and its investigation report with authorities, plans to open a criminal complaint against Nzimande, Khosa, and Ntumba, and intends to inform Nedbank about the conduct of their client, Coinvest. Outa is also requesting the removal of Nzimande as a Cabinet minister and Khosa as NSFAS chairperson.
The Department of Higher Education has responded to the allegations, with Nzimande rejecting them as “reckless” and based on gossip. Outa’s investigation comes amid concerns about NSFAS’s ability to disburse allowances for students and issues related to the 2024 academic year.
It’s important to note that the allegations are based on the released recordings, and any legal actions or further developments will depend on investigations and responses from the implicated parties.