The board of the National Student Financial Aid Scheme (NSFAS) has fired its CEO Andile Nongogo.
Board chairperson Ernest Khosa made the announcement before parliament’s standing committee on public accounts on Tuesday.
Last week, Khosa told the media that an investigation commissioned by the board found that Nongogo actively participated in the evaluation of the bids and the appointment of four direct payment service providers.
The tenders were awarded to fintech companies eZaga, Tenet Technology, Coinvest and Norraco to pay out billions of rands in student allowances.
A report of the investigation, conducted by legal firm Werkmans Attorneys and advocate Thembeka Ngcukaitobi, found that not only did Nongogo play a role in handpicking the companies, but that he had direct links with some of the companies from his previous job as CEO of the Services Sector Education and Training Authority (Services Seta).
According to the report, Nongogo appointed Dr George Chirwa – who has links with eZaga Holdings and its subsidiary eZaga Remit; Africawide Consulting, and Africawide Foundation – as technical advisor.
Not only was the appointment of Chirwa in contravention of NSFAS’ supply chain management policy, but Chirwa had a relationship with some of the companies that were appointed at Services Seta during Nongaga’s tenure.
The report also found that the bid specifications were amended to include fintech companies, which resulted in drastic changes in the mandatory requirements of the original bid.
Nongogo was given until Monday to explain why he should not be fired.
The contracts of the four fintech companies have since been cancelled, with some of them having threatened to take legal action against NSFAS.
The South African Federation of Trade Unions and the fintech companies are among many of the voices that have called on NSFAS to make its report public.
