DA: NSFAS dragging feet to end contracts with graft-accused service providers
A Werksmans Attorney report recommended that NSFAS cut ties with four companies appointed to administer direct payment services to students.
The NSFAS board chairperson, Ernest Khosa. Picture: @myNSFAS/Twitter
CAPE TOWN - The Democratic Alliance (DA) has accused the National Student Financial Aid Scheme (NSFAS) of not prioritising the termination of contracts with service providers linked to corruption allegations.
A Werksmans Attorney report recommended that NSFAS cut ties with four companies appointed to administer direct payment services to students.
READ: NSFAS backs call centre to handle student issues following criticism
The companies were recently named in recordings leaked by the Organisation Undoing Tax Abuse (OUTA) alleging they paid kickbacks to NSFAS board chairperson, Ernest Khosa, and Higher Education Minister Blade Nzimande to secure lucrative contracts from NSFAS.
"The board has appointed a task team to look into what is the best way of terminating these contracts. The board is still committed to implementing all the recommendations of the Werksmans report and they are currently processing that," said the scheme's acting CEO, Masile Ramorwesi.
DA MP Karabo Khakhau has accused NSFAS of dragging its feet on the matter and called for the board to be disbanded.
"We want them all gone, the minister's appointment is also shady. We also do not have faith in the current board, and it must be dissolved."