Sara-Jayne Makwala King19 July 2024 | 6:20

eZaga to resume payments to NSFAS: 'We are capable'

NSFAS intends to appeal the recent High Court ruling which reinstates eZaga as a direct payment partner.

eZaga to resume payments to NSFAS: 'We are capable'

Picture: Pixabay

Zain Johnson is joined by Saud Ally, CEO of eZaga Holdings.

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Fintech firm eZaga will resume paying National Student Financial Aid Scheme (NSFAS) funds to students following a High Court ruling this week.

NSFAS had ended the contract with eZaga and three other payment partners after an investigation found the tender process for the direct payment contracts to be irregular.

eZaga then applied to the Western Cape High Court, for it to reverse the termination.

The court found that the termination of the contracts was unconstitutional.

Ally says the ruling acts as a reassurance to eZaga's stakeholders. It will also help the company gain back the trust of the financial services community.

"The decision reaffirms that our position and capabilities to disperse the student allowances are efficient."
- Saud Ally, CEO - eZaga Holdings
"We are a financial institution. We have to abide by a compliance rules set... conducting our business in an honest, transparent and ethical manner."
- Saud Ally, CEO - eZaga Holdings

The High Court also found that the tender awarded by NSFAS to eZaga and the other payment partners complied with the requirements of section 217 of the Constitution.

"Compliance to Section 217 is very important. It basically governs the public procurement to be fair, transparent, competitve and, most importantly, cost effective."
- Saud Ally, CEO - eZaga Holdings

NSFAS says it intends to appeal the recent High Court ruling.

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