Cape Town - Higher Education, Science and Innovation Minister Blade Nzimande has described an investigative report by the Organisation Undoing Tax Abuse (Outa) implicating him and the National Student Financial Aid Scheme (NSFAS) board chairperson Ernest Khosa in alleged tender corruption and financial mismanagement, as a “nefarious fightback campaign”.
Nzimande held a media briefing yesterday (Mon), following the release of the report and leaked voice notes by Outa on Thursday.
According to Outa, the recordings reveal how service providers “allegedly paid millions of rand in kickbacks to Nzimande and Khosa, as well as at least R1 million to the SA Communist Party (SACP). This was done in return for tenders and protection for service providers.”
The report follows leaked voice recordings of two separate meetings between Khosa and a representative of a service provider, as well as a third unknown person.
Khosa reportedly met Thula Ntumba, the husband of Tshegofatso Ntumba, one of two Coinvest directors.
“The recordings confirm that Ntumba and his associates financially looked after people like Nzimande, Khosa and Nongogo. They in turn rewarded Ntumba and companies linked to him with contracts,” Outa said in a statement.
Outa has since called for the pair’s resignations.
Nzimande has denied the allegations that he used money from any of his department’s entities for funding the SACP, calling these allegations malicious and false.
“Nor have I received any personal kickbacks from any of the service providers to NSFAS or any of the other entities falling under my departments,” Nzimande said.
“As said in my statement on January 5, I reserve my rights to take the necessary legal action. I have voluntarily decided that I am going to subject myself to the relevant legal processes and ethics bodies of the ANC and SACP. I wish to once again state that I have nothing to hide or fear,” Nzimande said.
“...the allegations against me as minister and the attacks on the chairperson of the NSFAS board, Mr Khosa, are part of a nefarious fight-back campaign linked to success and measures I have taken to fight corruption and ensure clean governance at NSFAS. This campaign includes threats to the life and person of the NSFAS chairperson.”
The Werksmans Attorneys report released in October found that the appointment of four service providers in charge of disbursing student allowances were irregular and recommended the contracts should be terminated.
The board appointed Werksmans Attorneys to investigate allegations against its CEO Andile Nongogo related to work done with the Services Sector Education and Training Authority and the awarding of bids at NSFAS.
The report found a possible relationship between Nongogo and service providers Coinvest and eZaga Holdings contracted to disburse student funds.
“It is our view that the leaked so-called recordings are part of a nefarious fightback campaign that is meant to undermine and frustrate the decision of the NSFAS Board to start with legal proceedings which they are going to be doing soon to terminate the contracts of these four direct payment solutions service providers as recommended by the the Werksmans report,” Nzimande said.
Nzimande said he would be meeting with the NSFAS board tomorrow.