Higher Education Minister Blade Nzimande (Photo by Darren Stewart/Gallo Images via Getty Images)
The Organisation Undoing Tax Abuse (Outa) has challenged Higher Education and Training Minister Blade Nzimande to sue it after the minister claimed that voice recordings implicating him in corruption, released by the organisation, were “nefarious” lies meant to defame him.
“It is the minister’s right and freedom to take legal action against us if he feels he has a case, he’s welcome to sue us and all we will do is defend ourselves,” said Outa’s chief executive, Wayne Duvenage.
“We believe that we do not do our work recklessly, that we have all the evidence, and we will get more evidence that we know is there. He will have to be very participative in the legal process and it has the potential to backfire if he is not innocent,” he said.
Last week, Outa released the voice recordings of two meetings and a detailed 51-page report about alleged corruption between National Student Financial Aid Scheme (NSFAS) board chairperson Ernest Khosa, a service provider representative and Thula Ntumba, the husband of Tshegofatso Ntumba (a director in Coinvest, one of four service providers appointed to pay allowances to students). The recordings apparently revealed how service providers allegedly paid millions of rands to Nzimande and Khosa in kickbacks for tenders.
The recordings also suggest that almost R1 million was paid to the South African Communist Party (SACP), of which Nzimande is the chairperson.
According to Outa, the payments were made in return for tenders and “protection” for service providers.
SACP spokesperson Alex Mashilo denied Outa’s allegations, saying that the party “never had and will never” approach anyone for “illegitimate” funding.
After the release of the report, Nzimande’s communications team also rejected the allegations, saying the minister viewed the allegations as “reckless and largely based on gossip”. Nzimande reserved his right to take legal action, according to the department.
During a press briefing on Monday, Nzimande said he had nothing to hide and would cooperate with any investigations into the allegations. “I don’t have a problem with the SIU [investigating the allegations] if it’s given a proper proclamation to investigate whatever it wants to investigate. I have no problems.”
Duvenage said: “The minister knows that his chairperson at NSFAS [Khosa] was in those recordings because he has not denied it, and what has he done about it? He knows something is amiss in his department and he is part of the problem.”
Since the release of the recordings last week Thursday, Outa has called for Nzimande and Khosa to resign.
“If they don’t resign, we call on President Cyril Ramaphosa to fire them immediately,” said Rudie Heyneke, Outa’s investigations manager.
But Nzimande said there was no reason for him to resign because Outa’s claims were false. “I’m not going to resign … why should I resign? Someone mentioned my name. Ministers names are dropped everywhere … almost all the time.”
Outa said the recordings and its report on the alleged corruption would be sent to various authorities, including the Special Investigating Unit and public protector.
NSFAS has also dismissed the claims, criticised Outa’s investigative techniques and threatened court action.
The taxpayer-funded bursary and loan scheme for students said in a statement there was a “concerning trend” that “Outa’s successive ‘investigative’ reports are characterised by advocacy for [the] business interest of some individuals and companies who might have unsuccessfully attempted to solicit business from NSFAS”.
Outa said it would also write to Ramaphosa about Nzimande’s handling of NSFAS.
“Those documents are being prepared this week, so we will be writing to the president as well as the public protector. And let’s hope that the accountability is meted out,” said Duvenage.
After Nzimande dismissed the claims, Democratic Alliance (DA) MP Karabo Khakhau said: “[Nzimande] provided no evidence to contradict Outa’s allegations and assure vulnerable students who depend on NSFAS or the public at large that he hasn’t willfully risked their futures to enrich himself and his comrades.”
The DA has since laid a criminal charge against Nzimande.
The recordings form part of a streak of mismanagement and corruption allegations at the financial scheme over the past years.
In October 2023, NSFAS axed its chief executive, Andile Nongogo, over allegations of corruption, fraud and illegal tender dealings after a forensic report by law firm Werksmans alleged he had a relationship with one of the companies appointed for a new direct payment system.
Nongogo’s axing came after four suppliers — Coinvest Africa (Pty) Ltd, Tenet Technology (Pty) Ltd, Ezaga Holdings (Pty) Ltd and Norraco Corporation (Pty) Ltd — were appointed in June 2022 to handle the direct payments to students, which collapsed, leaving many students stranded.
Outa sounded the alarm on the tenders awarded and argued that the systems collapsed because the suppliers were “ill-equipped” to carry out the requirements of the new payment system.
“There needs to be a thorough investigation into the vast web of corruption in the higher education sector, which Outa’s various reports and these recordings reveal,” said Heyneke.
NSFAS announced prior to the release of the recordings that at least 20 000 students countrywide were still waiting for their 2023 allowances to be paid as it prepares for the 2024 student intake.
“When disbursements are made, the data from institutions and that of NSFAS must be in sync [but] because there is misinformation submitted to NSFAS the system blocks that student immediately, that is the case with the 20 000 students,” said NSFAS spokesperson Ishmael Mnisi.
While Nzimande faces criticism over his management of NSFAS, Ramaphosa, speaking in Mbombela, Mpumalanga, during the ANC’s 112th birthday celebration on Monday, said if the party fails to garner a majority in the national elections, NSFAS and social grants could be scrapped, implying that opposition parties will get rid of such.
“Our policies have been pro-poor. I don’t know of any other country in the continent that has committed itself to 18 million people who receive grants, young and old, as well as an additional 10 million who get grants of R350,” said Ramaphosa.
On Thursday morning, Nsfas released a statement saying Khosa had “voluntarily tabled a notice of thirty days of leave of absence in order to enable the Board to deal with all the allegations against him as contained in the recordings distributed by [Outa].”
According to the statement, Khosa tabled his leave of absence at a special meeting to discuss Nsfas readiness for the 2024 year, where he also told the Board he “had never received any financial gratification for his personal use or facilitated any for [Nzimande or the SACP].