NSFAS August allowances to be disbursed amid legal disputes
NSFAS officially filed an appeal against the Western Cape High Court’s judgment regarding the EZAGA interdict.
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On 25 July, the National Student Financial Aid Scheme (NSFAS) officially filed an appeal against the Western Cape High Court’s judgment regarding the EZAGA interdict. This appeal followed a statement from NSFAS, issued on 15 July, in response to the court’s ruling, which had deemed the termination of contracts with EZAGA and other payment partners unconstitutional.
NSFAS’s legal team advised that, despite the appeal, student allowances could continue to be disbursed as they have been over the past few months. For university students, this means receiving their allowances through their respective institutions, while TVET college students will receive theirs directly into their bank accounts.
Disbursement process for August
In August, university students will see their allowances disbursed through their institutions, maintaining the same process they have grown accustomed to. TVET college students, on the other hand, will continue to receive their funds directly into their bank accounts. This decision follows the conclusion of NSFAS’s contracts with EZAGA and three other payment partners after an investigation revealed irregularities in the tender process for direct payment contracts.
The Western Cape High Court’s ruling, which found the termination of these contracts unconstitutional, came after EZAGA sought judicial intervention to reverse NSFAS’s termination decision.
EZAGA welcomed the court’s ruling, with company representative Ally stating, “The ruling reassures our stakeholders and helps us regain the trust of the financial services community.”
SIU investigation into NSFAS affairs
The Special Investigating Unit (SIU) launched a probe into the tender process that led to the appointment of several service providers, including Coinvest Africa, Tenet Technology (Pty) Ltd, EZAGA Holdings (Pty) Ltd, and Norraco Corporation. This investigation uncovered alleged irregularities in how these contracts were awarded.
“The SIU and NSFAS have applied to the Special Tribunal to review and set aside these contracts and to declare them invalid and unlawful,” the SIU stated.
The SIU aims to have the service providers relinquish any profits accrued through these contested tenders. Under Proclamation R88 of 2022, the SIU is authorised to investigate corruption and maladministration within NSFAS and recover financial losses incurred by the state due to these issues.
The SIU’s mandate includes the ability to initiate civil actions in the High Court or a Special Tribunal to address wrongdoing found during their investigations. Additionally, any evidence of criminal conduct discovered will be referred to the National Prosecuting Authority (NPA) for further action.
What are your thoughts on the ongoing NSFAS legal battles and their impact on students?
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