Nobuhle Nkabane denies R200 million settlement claims from GIFS

Former Minister of Higher Education, Nobuhle Nkabane, has vehemently dismissed accusations from the Graduate Institute of Financial Sciences (GIFS) asserting that she consented to a R200 million settlement from the Insurance Sector Education and Training Authority (INSETA).

Responding to question from the Daily News, Nkabane stated she was unaware of any documentation regarding the alleged agreement and asserted that she had not seen such documents during her tenure.

“Please don’t inquire about anything regarding the DHET in future; you must communicate directly with the executive authority, Minister Manamela,” Nkabane remarked, aligning the issue with the current Minister of Higher Education, Bhuti Manamela.

However, Selina Maharaj, the GIFS’s risk and compliance manager, maintained that discussions had taken place with Nkabane before her resignation, indicating that the settlement negotiations had reached advanced stages prior to her departure from office.

“Please note that we are unable to provide further comment on this matter, other than to confirm that we were engaged in settlement negotiations with the former Minister of Higher Education, Minister Nkabane,” Maharaj stated, while indicating that the matter was proceeding to court, implicating the INSETA as well as Minister Manamela.

The controversy stems from the GIFS's claim for R200 million in damages after the INSETA withdrew its accreditation in 2022.

According to the GIFS, negotiations with Nkabane were in their final stages until Minister Manamela halted the process, refusing to sign the proposed agreement involving the GIFS and the INSETA.

Although a year and a half had elapsed since the legal proceedings commenced, the INSETA has yet to reaccredit the GIFS after its accreditation was suspended. In response, the GIFS has initiated a lawsuit for damages exceeding R200 million.

However, the INSETA has rejected the claims, and suggested that the case revolved around addressing their de-accreditation linked to findings of “fraudulent” conduct.

Following the revocation of the GIFS’s accreditation, the institute sought recourse through the Gauteng South High Court, where Judge Yacoob granted a temporary interdict.

The INSETA subsequently filed an appeal, meaning the de-accreditation remained effective throughout the ongoing legal processes. The GIFS's efforts to challenge the INSETA have faced notable setbacks; multiple judges have ruled against the institute in urgent applications, declaring the claims lack merit.

Acting Judges Wepener, Van Niekerk, and Marais have all dismissed the GIFS's requests for relief with costs.

The saga traces back to April 22, 2021, following alarming revelations from Uthika Maharaj, a former GIFS employee, who accused the institute of fraudulent practices linked to Covid-19 sanitisation efforts and damaged learner portfolios.

Her assertions were further supported by testimony from Francinette Zagorski, the former Chief Financial Officer of the GIFS, who documented her refusal to sign a dubious affidavit concerning the alleged damages.

The whistleblowing triggered an investigation by Masegare and Associates Incorporated in November 2021, which unearthed significant issues, notably that the GIFS misled the INSETA regarding the conditions of learner portfolios, revealing inadequate storage conditions that contradicted the GIFS’s previous claims.

DAILY NEWS