On Wednesday, National Student Financial Aid Scheme (NSFAS) board chairperson, Ernest Khosa, announced a voluntary month-long leave of absence in response to allegations contained in leaked audio recordings distributed by the Organisation Undoing Tax Abuse (Outa). The recordings suggested that service providers, awarded significant tenders by NSFAS for administering direct payments to students, paid kickbacks to Khosa, Higher Education Minister Blade Nzimande, and the South African Communist Party.
In a statement, the NSFAS board revealed that an independent legal firm would be appointed to investigate the veracity of these allegations. Khosa, who denies any wrongdoing, clarified that his decision to step aside temporarily is not an admission of guilt.
The board emphasized Khosa’s assertion that he had never received personal financial gratification or facilitated such for the minister or the SACP. They characterized Khosa’s decision to take leave as “honourable, brave, and responsible.”
The appointed legal firm, whose details will be disclosed by the board, is expected to deliver its findings within 30 days of initiation.
Meanwhile, the labour court recently validated the termination of CEO Andile Nongogo’s contract, following allegations of irregular conduct related to the appointment of direct payment service providers. The board intends to proceed with appointing a new CEO to enhance supply chain management systems and pursue the legal process for terminating contracts with direct payment service providers.
