Employees urge probe of NSFAS CEO
Letter to SIU claims board also involved in supply chain, tender manipulation
EMPLOYEES at the National Students Financial Aid Scheme (NSFAS) have requested the Special Investigating Unit (SIU) to probe chief executive officer Andile Nongogo and his board for corruption, malpractice and nepotism.
The employees alleged corruption has been rampant under Nongogo and his board. Nongogo, who took over from administrator Dr Randall Carolissen, was appointed in November 2020.
In a seven-page letter to the SIU, the employees said the rot at the entity continued under Nongogo and his board. The employees asked the investigating unit to probe all tender processes, including failed IT systems and failed laptop tenders. The employees said Nongogo had taken over the supply chain management (SCM) to give contracts to close associates.
“Sometimes they (service providers) go meet him in the meetings and there are instances where the service providers would look for the CEO. It is clear that the CEO has taken (over) the process of end-users,” reads the letter.
“The student calculator tender – (This is an) NSFAS system that was procured in 2010/11 (Codis and Phoenix) for the sum of R100 million. NSFAS procured a system to disburse funds to eligible students. But the CEO believes that the system is not fit for purpose and advertised the tender to replace the disbursement system. However, the student calculator was never used and it is not working and the service provider was already paid. The service provider was paid R15 million for the system that is not working. This is fruitless expenditure.”
Nongogo has also been accused of extending the contract of Lunika Incorporated for a closeout project which is alleged to have not yielded results.
“The closeout process was never closed and it does not make sense why the service provider’s contract has been extended for two years. It should be noted that the closeout projects did not yield any fruits. As a result, NSFAS received a disclaimed audit contributed by this project which has never been closed, (the backlog 2016 to 2021). The project is still not finalised.”
Lunika senior administrator, Sikho Yekela confirmed his company was doing business with NSFAS, but denied the project had not yielded results.
“The reconciliation work was undertaken in the form of virtual and physical engagements with institutions. To date, NSFAS and institutions have agreed on numbers/figures, and have clarified the funding status of students and amounts disbursed to institutions and allocations to students. To date, NSFAS has recouped about R179m from 13 institutions and is still expecting to recoup more funds from other institutions.
“Project files requested by the SIU have been provided to assist with the ongoing investigation. Lunika team has held two engagements with SIU officials,” said Yekela.
Nongogo was also accused of moving NSFAS from its offices in Wynberg to the CBD, where it would be allegedly paying rent of R1.8m a month. The letter said the reason was that Nongogo wanted to sell the building in Wynberg.
The employees also asked the SIU to investigate new employees, saying there had been irregular appointments. They said this was happening because Nongogo had taken over the human resources department.
The employees also want the SIU to investigate the appointment of a senior manager in finance and budget, Luhle Tshangela, saying she was earning more than senior managers who had been at NSFAS for a long time. They said the interview was conducted by Nongogo and HR general manager Thapelo Letswalo. Nongogo was also accused of purging and intimidating senior managers who refused to implement questionable instructions.
In August, the SIU announced in a statement it would probe corruption and maladministration at the NSFAS. It said it would also investigate any unlawful or improper conduct by employees of officials of the entity, service providers and their employees, or any other person or entity.
On Tuesday, SIU spokesperson Kaizer Kganyago said they would also investigate the allegations levelled against Nongogo and the board.
NSFAS spokesperson Masile Ramorwesi this week said the questions sent were intended to tarnish the good name of the scheme, its board, and in particular, Nongogo.
“NSFAS is a schedule 3A public entity, governed by the Public Finance Management Act (Act No. 1 of 1999) and the regulations and instructions issued by the National Treasury in accordance with the act. Accordingly, NSFAS procurement processes and approved SCM policy has been developed in accordance with the above legislative prescripts. All procurement activities are aligned to these prescripts, policies, and processes,” said Ramorwesi.
“The CEO does not have any relationship with Lunika. Lunika is a duly appointed service provider of NSFAS. NSFAS was leasing at Wynberg and the lease ended. In terms of the PFMA when a contract /lease ends a public entity is required to follow a proper procurement process. That is exactly what NSFAS did.”