Ezaga Holdings (eZaga) has refuted any past association with National Student Financial Aid Scheme (NSFAS) CEO Andile Nongogo after a Werksmans Attorneys report suggested there was a possible relationship.
The report further found there seemed to have been a conflict of interest in the appointment of the four fin-tech service providers, including Coinvest Africa, Tenet Technology and Noracco Corporation, appointed to handle the direct payment of student allowances.
NSFAS board chairperson Ernest Khosa, joined by other board members and acting CEO Masike Ramorwesi, shared some of the outcomes of the report at a media briefing on Wednesday.
Legal heavyweights advocate Tembeka Ngukaitobi SC and Sandile July from Werkmans Attorneys led an investigation into tender irregularity allegations against Nongogo and to review procurement systems and processes.
Nongogo has since been on special leave for nearly three months.
According to Khosa, the report indicates there was an amendment to the bid specification to include fin-tech companies, which resulted in drastic changes in the mandatory requirements of the original bid.
“These changes would have required deeper analysis to be conducted, among others, on the need to appoint four fintech companies and their value-added services, the service directs costs to students and the details and the cancellation of the 2020 tender, which was a precursor to this bid under investigation.
“Nongogo actively participated in the presentation to the Bid Evaluation Committee (BEC) of proposals by service providers.
“This is a material violation of the public procurement processes of NSFAS, which he was employed to safeguard and uphold,” he said.
It’s alleged Nongogo appointed a technical adviser to assist BEC, while the 2021 supply chain management (SCM) policy did not provide for the appointment of an expert to the committee.
“The report noted that the aforementioned SCM policy and position was altered in the 2023 SCM policy to cure the defect of appointing Dr Chirwa (technical adviser) in the BEC when the 2021 SCM policy did not provide for such.”
Khosa said certain companies were appointed as service providers, both at the Service Seta (SSETA) and at NSFAS.
“The companies in reference are eZAGA Holdings in which eZAGA Remit is a subsidiary, Africawide Consulting (Pty) Ltd and Africawide Foundation.
“The board has therefore decided to write to Mr Nongogo and grant him an opportunity to advise on why his contract should not be terminated. He has until next Monday. All staff members associated with wrong doing, as mentioned in the report to a disciplinary enquiry.
“All the direct payment service providers will have their contracts terminated. The board will ensure that this termination does not affect the students negatively. In this regard, the board is mindful of the universities they have made and expectations they had over next step will take into account both the law and the implications to service delivery,” he said.
The SCM policy will also be reviewed.
The board also met with Minister Blade Nzimande on Tuesday night, his spokesperson Ishmael Mnisi, confirmed he was given the report.
“The Minister is currently studying it,” he said.
eZaga’s CEO Saud Ally said they were “deeply disappointed” by the board's decision to terminate its tender.
The company told the Cape Times that the allegations against it raised significant concerns, including questions about the fairness and legality of the proceedings.
They are yet to be given a receive a copy of the report.
“eZaga strongly denies any association with or connection to Mr Nongogo before the tender was awarded. eZaga was awarded the tender having met all the necessary tender specifications and has consistently delivered on these requirements. As a result of the allegations made, eZaga is in the process of engaging legal counsel to address and respond to these accusations appropriately,” said Ally.
Cape Times