NSFAS files leave to appeal ruling favouring firm to distribute funds directly to beneficiaries
NSFAS’ termination of its contract with eZaga earlier in 2024 was last week ruled to be unconstitutional by the High Court in Western Cape.
The NSFAS logo. Picture: @myNSFAS/Twitter
JOHANNESBURG - The National Financial Aid Scheme (NSFAS) has filed leave to appeal a High Court ruling favouring a firm that was responsible for distributing funds directly to beneficiaries.
Earlier in 2024, NSFAS terminated its contract with eZaga following a Werksmans report that found the tender process for the payment contracts was irregular.
The matter was then heard by the High Court in Western Cape last Monday, finding that the termination of the contract was unconstitutional.
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NSFAS said its latest legal battle will not interrupt the disbursement of student allowances.
Spokesperson Ishmael Mnisi said the NSFAS' legal team has advised that student allowances be paid as arranged in the past few months.
“For the month of August, university students will receive their allowances through their institutions and TVET college students will receive their allowances directly into their bank accounts.”
The student funding scheme believes it will emerge victorious in its appeal despite an interdict from taking further steps to cancel the deal.