Photo: National Student Financial Aid Scheme (NSFAS)/ Facebook
NSFAS: Public Protector asked to investigate awarding of contracts
The four companies out bid the big four banks, FNB, ABSA, Nedbank and Standard Banks as well as MTN for the NSFAS tender.
Photo: National Student Financial Aid Scheme (NSFAS)/ Facebook
The introduction of a new direct payment system by the National Financial Aid Scheme(NSFAS) has not been recieved well by students, institutions NGO’s alike. Stellenbosch University SRC has written to the Public Protector to look into the awarding of the contracts by NSFAS to the different service providers.
NSFAS has appointed eZaga, Coinvest, Tenetech and Norraco to disperse funds to beneficiaries in Universities and TVET colleges.
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STUDENTS CHARGED HIGH BANKING FEES BY NSFAS
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SRC vice chairman William Sezoe says the NSFAS and service providers are charging exorbitant fees for using the account. In the letter sent to the public protectors it shows the different fee costs which includes:
ATM withdrawals- R10 plus R2 per R100
Pin reset- R6,50
POS (point of sale) withdrawal- R3
“It is unjustifiable that student’s have to cut their allowances, just to access them and be able to live in a country where the cost of living is already so high” says Sezoe.
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“It is unacceptable that NSFAS is charging students that they ought to serve. It is unacceptable hence we will wait the outcome of the investigation and the public protector must make sure that education funds are protected”, added Sezoe.
Three points for the Public Protector to investigate:
- The involvement of the NSFAS CEO (Andile Nongogo) in awarding the tender since he had a business relationship with the directors of Coinvest.
- How NSFAS got to award it to companies without financial licenses.
- If appointing companies who are charging students exorbitant amounts of money are justifiable and whether that is a good use of how public and particularly education funds ought to be spent.
OUTA INVESTIGATION FINDINGS
ALSO READ: Thousands of unqualified students received R5.1 billion in NSFAS funds, says SIU
A 2022 investigation by OUTA revealed that the appointment providers were not registered as financial services providers as required by the Financial Sector Conduct Authority and deemed it ‘a great concern and could be an act if maladministration by NSFAS
Ezaga Holdings – held an affiliated banking licence with Access Bank. A banking licence or affiliation with a bank with a banking licence was a compulsory bid requirement. Two of the successful bidders, Norraco Corporation and Tenet Technology, were also not registered as VAT vendors when they submitted their tenders.
