The National Student Financial Aid Scheme, NSFAS, said it is vindicated after the Labour Court declared that the termination of the contract of employment of the former NSFAS CEO, Andile Nongogo is lawful and valid. 

The board terminated Nongogo’s contract last year, following his irregular involvement in the appointment of four fin-tech direct payment service providers. 

“The NSFAS Board further welcomes the decision by the court to dismiss with costs the application by Nongogo to strike out certain paragraphs as contained in the Werksman Attorney’s report. 

The report implicates him of irregular conduct in relation to the appointment of direct payment service providers,” said NSFAS spokesperson Ismael Mnisi. 

Mnisi said the board regard the Werksman’s report as necessary and important measure to propel the scheme to a much more elevated level of get rid the scheme of corruption. 

The report established that Nongogo actively participated in the presentation to the Bid Evaluation Committee of proposals by service providers.

According to the NSFAS, this was a material violation of the public procurement processes of the scheme, which Nongogo was employed to safeguard and uphold.

Furthermore, the report revealed that there seemed to have been a conflict of interest in the appointment of these four fin-tech service providers.

Mnisi highlighted that the judgment will now allow the scheme to terminate the service providers contracts. 

“Following the groundbreaking judgment, NSFAS will vigorously continue with its legal process towards the termination of contracts of direct payment service providers. 

The termination of the contract will be handled with due care not to disrupt the disbursement of the allowances to students in the 2024 academic year,” explained Mnisi.

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