STUDENT FUNDING SCANDAL
Nzimande vows to sue Outa for spreading ‘nefarious’ lies
The higher education minister says Outa’s report damages his ‘good name’, as well as that of his department and the government.
Higher Education Minister Blade Nzimande has called a damaging report by the Organisation Undoing Tax Abuse (Outa) a “nefarious” lie that emanates from a malicious “fight-back” campaign.
This, he says, has damaged his good name, threatened trust in the students’ payment system and resulted in death threats aimed at the chairperson of the National Student Financial Aid Scheme (NSFAS).
At a press briefing on Monday, Nzimande took aim at the report and recordings of conversations between NSFAS chairperson Ernest Khosa and two suppliers in which they discuss alleged kickbacks, mismanagement and political meddling in the scheme.
Nzimande was identified as a key figure in the saga.
Read more in Daily Maverick: Calls for action after recordings expose alleged cosy relationship between Blade Nzimande, NSFAS chair Ernest Khosa and service providers
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 direct payments to students, which Outa says they were ill-equipped to do, causing the NSFAS payment system to collapse.
Months after these suppliers were appointed, Outa sounded the alarm that awarding the tender to these service providers would cause payment issues.
It has also published several reports exposing how funds were being mismanaged and the role of former NSFAS CEO Andile Nongogo (previously the CEO of the Services Sector Education and Training Authority, or SSETA) in the alleged corruption at NSFAS.
Among the issues cited by Outa are authorised payments of R93,579 for 20 branded T-shirts (costing R4,679 each); R264,340 for six branded umbrellas (R44,057 per umbrella); R36,300 to design a letterhead, and R668,200 to print 100 copies of the Services Seta Annual Performance Plan. This happened in 2017/8 while Nongogo was the CEO at SSETA. He was the official responsible for managing the tender in terms of the Service Level Agreement — awarded to Five Stars Communication and Projects, which also belongs to the owner of Star Sign and Print, Anastacia Baloyi.
On Thursday, Outa released the recordings, transcripts of the recordings and a detailed 51-page report on the alleged corruption, in which Khosa, an unnamed supplier and Thula Ntumba, the husband of Tshegofatso Ntumba (a director in Coinvest, one of four service providers appointed to disburse payments to students), discuss corruption investigations and alleged kickbacks for tenders, favours and “protection”.
Nzimande appointed both Nongogo as CEO of NSFAS and Khosa as the chairperson of the NSFAS board. Nzimande remains associated with the SA Communist Party (SACP), after serving as its general secretary for 24 years.
Ntumba is heard in the recording mentioning a gift of T-shirts and bags for the SACP’s 2022 conference — provided through his wife’s company, Star Sign and Print — and allegedly gave the party R1-million.
The SACP has denied receiving favours, with spokesperson Alex Mashilo telling Daily Maverick that they have “never and will never” approach anyone to seek “illegitimate” funding.
“We will not allow anyone to engage in shenanigans and to try and co-opt the name of our party into those shenanigans. We stand firm in our stance against corruption. We saw the transcripts of the recordings by the third party from Outa, but we remain firm in what we have said.”
Nzimande’s department tweeted a clumsy response on Friday, saying he rejected the malicious allegations.
“The minister views the allegations… as reckless and largely based on gossip and are intended to determine a smooth start to the 2024 academic year. Furthermore, given the damaging allegations continued in this report, the minister reserves the right to take the necessary legal action.”
Ntumba couldn’t be reached and requests for comment from Coinvest and Tshegofatso Ntumba went unanswered.
There was no response from either NSFAS or Khosa.
On Monday, Nzimande called Outa’s report an attempt to tarnish his image as well as that of the department and the government.
“I have never used any money from any of my department’s entities for the purpose of funding the South African Communist Party, as maliciously and forces suggested in the Outa report. Nor have I received any personnel kickbacks from any of the service providers or any of the other entities falling under my department. I therefore wish to dismiss this baseless insinuation by Outa.”
He said his conscience was clear and he had nothing to hide, which is why he reserved his right to take the necessary legal action.
“I’ve also voluntarily decided that I’m going to subject myself to the relevant legal processes and ethics bodies of the African National Congress, its integrity committee, and the South African Communist Party (and) its central ethics commission.”
Meanwhile, Outa tweeted that Nzimande was welcome to sue them.
“Outa will defend any legal action taken against us. (It’s not the first time we are threatened. NSFAS threatened us with defamation because we said we uncovered #corruption with the tender contracts of the four service providers. Something which the #WerksmansReport confirmed.)
“And if #BladeNzimande has nothing to hide, @CyrilRamaphosa @PresidencyZA must broaden the scope for the @RSASIU without fail to also include this. And also, remember that #AndileNongogo himself referred to these voice recordings where Khosa is discussing him being fired.”
The DA has questioned what it called “systemic corruption” in the department and said it would lay criminal charges against Nzimande and wants the NSFAS board to be declared delinquent.
Leave of absence
The NSFAS board said on Wednesday, 10 January 2024 that Khosa had “voluntarily tabled a notice of 30 days’ leave of absence… to enable the board to deal with all the allegations against him as contained in the recordings distributed by the Organisation Undoing Tax Abuse”.
During a special meeting to discuss the scheme’s state of readiness for the 2024 academic year, the chairperson had reiterated to the board that he had “never received any financial gratification for his personal use or facilitated any” for the minister of higher education or the South African Communist Party.
The board “would like to emphasise that this decision should not be interpreted as an admission of guilt on the part of the chairperson”.
Adding that it was now the minister’s “fiduciary responsibility” to appoint an acting board chairperson, the board described Khosa’s decision as “honourable” and “brave” and “a responsible and conscious step to advance good corporate governance, transparency and accountability”.
The board also said it had resolved to appoint an independent legal firm to look into the veracity of the allegations against Khosa. The firm – soon to be announced – would be expected to submit its findings within 30 days of its appointment. DM
This article was updated on 11 January 2024 to include a statement from the NSFAS board.
Far worse than a bad smell from a fetid swamp!
Right on cue;the ANC mantra kicks in. DENY, LIE, BLAME….and then repeat. None of the corrupt, thieving politicians in this putrid excuse for a political party, has yet legally charged any author, journalist who have so bravely exposed the rot, always based on bullet proof fact. It won’t be any different with this tired Commie….noise, bluster, veiled threats and NOTHING will happen. He has simply ticked all the boxes per the ANC script….feed, feed
Sounds like someone looking back at the bowl in the little room and does not like the look, before he used soft square like paper
Well it’s certainly one thing old Blade doesn’t have and never had is a good name
In fact, his name should be Shaving Cream Nzimande. He is definitely not sharp.
That said, all of the people in this damp stench, the SACP, the ANC, Cosatu etc have threatened to take people to court for defamation, like the ANC on De Ruyter. It is a difficult case to proof since YOU have to proof that your side is clean, in as far as my (limited) knowledge goes.
Thinking of it: Bra Mbuks, when will we see the promised action against De Ruyter?
Shaving Cream.. OMG that’s funny!
Best comment of the new year… roll on DM comments section.
The readers and commenters of DM are the only thing keeping me sane.
To apply your own standards on a previous comment – its clear your comment is only motivated by jealousy of Nzimande’s political power and wealth
C’mon man, sharing is caring… puff puff pass
Blade ust get the “knife” he is just a common thief like the rest of the anc
Well done OUTA. Now can we press charges like That SAA chair. Declare the lot delinquent. Zero confidence criminal charges will emanate
Ok Blade.
I dare you. Sue OUTA.
You wont you coward!!!
Because this is all true!!
And the usual behaviour from ANC and its cadres: you’re caught with your hand in the cookie jar, but instead of shame, contriteness, and begging for forgiveness, you just double down and blame your accuser. It’s becoming a tired game.
I love it when someone says to me “I reserve my right to take legal action”. That right exists whether you “reserve” it or not. When someone uses that sentence, all it means is they know they don’t have a case.
A sad post-script to an, otherwise ,well disguised politically misleading career . Allegedly .
Like Oscar Wilde, who sued the Marquis of Queensbury for libel , Blade will come off second best.
I’m actually struggling with the term “nefarious lie”. Is it different from a “firepool lie”?
Or is there a mendacious liar floating about?
Another weak & futile attempt at disgracing the accuser when irrefutable facts are presented. Same answer as Zuma against the author of The President’s Keepers” and Ace against the exposer of his misdoings, ANC against De Ruyter, etc, etc! We are still waiting for all those promised legal actions!!! Another 30 years perhaps??
The words “Blade Nzimande” and “good name” do not belong in the same article, let alone the same page or same paragraph.
Time to go, Squeaky, because clean you are not.
Blunt Nzimande is a seasoned and serial crook. Remember him and Willie Madisha money saga?
Hahaha classic! Blunt Nzimande the Crooked Commy!
Get it in your head. There is not one government contract issued without a backhander involved. It is the DNA of Africa.
One needs to be “pragmatic”, to quote another SACP intellectual. Everyone must eat a little.
It is in the DNA of governments worldwide.
Oh NO! The ANC is special. Believe me. They make Putler blush. Perhaps because they’re so stupid when they ‘feed’.
Let him go to court and prove his “innocence.” I’ll bet my meagre pension that he wouldn’t dare, for he may actually have to account for his actions. Hot air.
“I’ve also voluntarily decided that I’m going to subject myself to the relevant legal processes and ethics bodies of the African National Congress, its integrity committee, and the South African Communist Party (and) its central ethics commission.”
Ja, that will convince a few retarded folk. The ex-kleptocommie in chief could just as well have a layer of whitewash applied to his exoskeleton. As to the threat of legal action against OUTA, pull the other one.
Will he be suing with his own money or the departments. How many students will not get funded because Blade believes he has a good name.
“Just because you did it, doesn’t mean you’re guilty “.
(author unknown to writer).
SO many politicians use this argument, it seems.
He has damaged his own reputation. Typical ANC trying to shift the blame.
Really, Leonora? You give him way too much credit. He never had a reputation. The putative legal action would fail on two grounds: truth & no proven loss.
New year, same sh**t
The useless, verbose, vacuous and conflicted Nzimande needs absolutely no assistance in tarnishing his image – he has done that all by himself with aplomb and continues to do so. He is your typical anc “leader” that we have come to know, at SA’s cost, and despise intensely – lying, thieving, hypocritical, immoral, parasitic and without any iota of integrity, common decency and honesty. To hell with this lot of scumbags!
Let Mr Mzimabde bring his court action , what makes me angry is that we, the tax payer will fund it
Thou doth protest too much!
Corruption accused officials are guilty until proven innocent, not the other way around. If you cant follow due process, why should the courts?
Sue OUTA – what a joke! It is certainly also sheer bluster that will never end up being challenged in court. So typical of yet another compromised ANC “comrade in crime’. OUTA will certainly have done their homework and verified the source of their information.
BTW – kakistocracy is a real word and defines this government!
These crooks must do what they tell everyone….SUE!!!………However, they won’t because they know that in a court of law all evidence will be presented, and no one can rely on ‘hearsay’….It’s the story of the ANC, as soon as they start threatening litigation, we all know they are as guilty as the thief who enters my house and tells me he is just visiting me😂
When an anc member says ‘I have never’ ……
This could get interesting. Firstly the veracity of OUTA’s dossier will need to be established. And it would need to be shown that the Minister was aware of what was going on.
But what I don’t get is why Nzimande reacted at all. OUTA are no threat unless they initiate a court case, and they haven’t. Perceptions of him would be hardened but not changed by this report. He should have just said nothing or made a vague comment about having noted that OUTA had issued a report.
Like, present evidence under cross-examination in s public court? I would not have thought that Cde Blade’s preference.
I take it the New Years new broom will simply sweep this under the old carpet. The ruling ( actually Non ruling , ruling party ) Party provides so much ammunition for it to be taken down and out, but despite years of corruption , it just keeps on going. Is there an end in sight?
There can’t be much room under the old carpet. Maybe the ANC got a new larger carpet for Xmas.
The Minister of Higher Education is sub-literate. Did he get this appointment because the ANC needs the SACP onside during elections? And is it possible that turning a blind eye to allegations that his fingers are in the cookie jar of NSFAS is a means of buying his loyalty? Will the President open the can of worms that OUTA has exposed?
OUTA would love to be sued by Mampara Nzinmande, a case OUTA cannot lose!
Deny, deny and deny
Along with sue, sue, sue
This is the gangster way
Repeat
Threatening to sue and actually suing are two different things. My bet is he won’t sue because he does not have a case. In other words, he is most likely guilty.
The part I really love is this ANC and SACP “…ethics commissions” BS….within the ranks of both political parties, there isn’t a single honest, ethical, or upright person. They are all rotten to the very core….to their very DNA they are putrefied: no exceptions.
Of course you will submit to the ANC Ethics Committee Blade. You know how toothless and incompetent they are at making findings against members.
Those were my exact thoughts, too. Eish, this corruption is so relentless and disheartening.
Rotten to the core – so sad for the youth. But it’s also your job to get rid of the ANC government at the polls. Your vote – your future.
We are plagued with unbelievable corruption we live on the edge of total disaster
@blade – just blame Jan, WMC and aparthate and Bob’s your uncle. You are not guilty ….
He really doesn’t have to worry about his good name – along with every other crook in the ANC
Amazing how they can dispute facts , but they know nothing will happen to them , the powerful stays immune from prosecution, it really is time to take back the moral high ground from this corrupt ANC. The people must take action, doing nothing will be our own downfall.
Trust in the student pay system and NSFAS broke some time ago, Minister Nzimande. I can understand why you may not have noticed. As for good names, such slippery things in government.
So Nzimande has decided to subject himself to the ANC Integrity committee and the SACP’s Ethics commission. In context, these two terms represent two of the greatest oxymorons on earth. Other than hearing of the terms integrity and ethics, these terms have been demonstrated to be alien to the ethoses of both organizations.
ANC Integrity committee and SACP’s Ethics commission, “two of the greatest oxymorons”, whereas Blad is just a ‘regular’ moron, LOL.
The best part of this is the comments from the readers
But I can’t see any
My husband is chortling next to me and short of wrestling his phone away from him, I can only sulk
Hopefully it is only a technical glitch
Sa! Take them on Nzimande. Jou bang broek……
A “VOW” from a member from the ANC literally has ZERO value.
The top brass of the ANC have no soul, no self respect, no humanity, no class, no education and deserve no respect of even attention.
“Vow”, “Promise” etc etc blah blah blah.
Nothing these cretins say means anything anymore. They are vile creatures, the lowest denizens of the globes political swamp dwellers.
Compared to the average senior ANC parliamentarian, trump is angelic paragon of honesty, dignity and truth.
I find these fat cats bouncing on a hot tin roof very entertaining, and the timing is impeccable.
What’s also funny is you have a non profit social rights organization that gets its funding from a tiny fraction of the population giving the anc stick because of deep pockets, but the anc with a supposedly majority citizen support cannot pay it’s own wages. 😂
If he wins a case for slandering his reputation he can look forward to at least 1000 roubles judgement!
“The minister views the allegations… as reckless and largely based on gossip and are intended to determine a smooth start to the 2024 academic year. Furthermore, given the damaging allegations continued in this report, the minister reserves the right to take the necessary legal action.”
A tweet from the department of education, yes – higher education.
I’ve been wondering why NSFAS can’t be replaced by a simple calculation of how much to give each university and a direct transfer to each university, since they are the ones who disburse the funding to students.
Here’s my answer.
What good name?
?
I wonder if this muppet minister can listen for meaning? He certainly can’t read for meaning.
Whatever happens he will be cadre protected by the NPA.
In Zulu it is called “icala lingumphikwa” the charge is refuted, translated…
The ANC Cabinet, the not so clever Blade Nzimande, the latest to do so, in so many cases in the past, threaten or threatened direct consequences, my recollection says none have made it to Court,
Refer to de Ruyter’s Eskom, as an example, Mr Do Dololo, Mbalula and others….
Sarcastically, they bark like Rottweilers but bite like Miniature Dobermans
Note how often corruption accused members of the ANC et al fire back with “we will sue” and then then ….. nothing !
That said, even after damning allegations against various members of the “elite” – nothing seems to happen.