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Nzimande in fiery bust-up with parliamentary committee over NSFAS

Higher education minister expresses disappointment at committee 'instructing' four service providers to report within seven days

Prega Govender

Prega Govender

Journalist

Minister of higher education science and innovation Blade Nzimande says he will take legal action against Outa which has implicated him in corruption allegations around NSFAS deals. File photo.
Minister of higher education science and innovation Blade Nzimande says he will take legal action against Outa which has implicated him in corruption allegations around NSFAS deals. File photo. (Freddy Mavunda)

“Minister, you can’t tell me how to chair a meeting.” 

This is what portfolio committee on higher education chairperson Nompendulo Mkhatshwa told higher education, science and technology minister Blade Nzimande in the heat of the moment during a briefing in parliament on Wednesday.  

Nzimande expressed disappointment at the committee giving “instructions” to four service providers to report within seven days when he was interrupted by Mkhatshwa after she noticed the hand of an MP raised during the virtual meeting. 

The service providers — eZaga Holdings, Tenet Technology, Coinvest Africa and Noracco Corporation — were briefing parliament on the disbursement of allowances to students, the problems experienced and plans to address them. 

I can’t, as minister, go to the service providers and give them instructions. If I am unhappy, I have to call the board of NSFAS. We are a constitutional democracy and a constitutional state and we must respect the separation of powers

—  Blade Nzimande

Mkhatshwa said she saw a hand was up but Nzimande interjected, saying “No, chair, allow me to finish and then the hand can come after what I have said.”

But Mkhatshwa would have none of it. “Can you afford me an opportunity, minister, to find out what the hand is up for?”

Nzimande then said: “OK, let me respect you, take the hand.” 

He told the committee parliament makes the laws and monitors the executive while the executive, including the president, deputy president and ministers, makes policy and proposes and implements laws passed by the legislature.

“If you say the service providers must come back with a report within seven days, you are giving an instruction.

“You are placing the committee to usurp the powers of the management of the National Student Financial Aid Scheme [NSFAS] that entered into an agreement with the service providers and you are also usurping the powers of the board of NSFAS 

“You are also, in a way, usurping my own powers as the minister. I can’t, as minister, go to the service providers and give them instructions. If I am unhappy, I have to call the board of NSFAS. We are a constitutional democracy and a constitutional state and we must respect the separation of powers.” 

He had never heard that a portfolio committee can instruct a member of the executive or an organ of the executive “to say do this or that”. 

“That goes beyond oversight. Parliament plays an oversight role. I am worried about beginning to give instructions that you can’t enforce as a portfolio committee. You are going beyond the powers of a committee in the instructions you are giving and I can’t allow that as a minister. I will have to raise it and, if need be, we need to take it up with higher structures.”

Mkhatshwa’s response was service providers had not taken them into their confidence during the meeting on whether all students they are responsible for disbursing allowances to have received it. 

“What we are requiring from service providers is information and parliament is well within its rights to be afforded information. Minister, according to the legal advice we received from parliament itself, requesting service providers to bring us into their confidence is well within our rights.” 

She added they were not instructing anyone to do anything, but saying they must provide the information. 

Earlier, Nzimande said as much as NSFAS may be experiencing challenges he was concerned about, “it’s incorrect to project it as if it is lying flat on its stomach.As I am speaking now, hundreds of thousands of NSFAS beneficiaries are studying, moving towards writing their exams and making the best of the situation.”

NSFAS board chair Ernest Khosa told the briefing the investigation by law firm Werkmans Attorneys into, among other things, allegations against NSFAS CEO Andile Nongogo is expected to cost R2m. 

While the board recognises, in the main, the allegations stem from activities in another organisation, it views them in a serious light

—  Ernest Khosa, NSFAS board chair

Nongogo was placed on a leave of absence in August over allegations against him while he was at the helm of the Services Sector Education and Training Authority (Sseta). 

The board said at the time of placing him on a leave of absence the allegations relate to his work with the Sseta and “how this may relate to unacceptable conduct in the awarding of bids at NSFAS 

“While the board recognises, in the main, the allegations stem from activities in another organisation, it views them in a serious light.” 

Advocate Tembeka Ngcukaitobi and attorney Sandile July were appointed to conduct the investigation. 

Khosa said “because of the intensity and amount of work involved in doing the report and the need for the report to be credible, we may be talking of an amount of R2m”. 

The report would be ready within the next 10 working days, he said. 

“Early next week we will be in a position to make an announcement on the new core business executive, the [appointment of a] COO of the organisation.

“Nongogo is the CEO of NSFAS, with all the rights, according to employees, in his employment contract. He should be treated with the respect that goes with his position.”

He said they will also be in a position to announce the new head of communications “which is a critical position given the need to communicate better with stakeholders”. 

“We are also at an advanced stage to appoint the head of planning and strategy for the organisation.”

He said an hour earlier they had a case of consequence management “when we separated with our manager for human resources”. 

Commenting on their new intervention strategy, he said they were reacting to the challenges identified, which included:

  • ICT weaknesses;
  • human capital capacity;
  • weaknesses in managing stakeholders; as well as
  • inefficient product delivery systems. 

“There was also the need for leadership improvement in the organisation.” 

One of Nzimande’s directives was the initiation of criminal and legal action against students and other people who have been defrauding NSFAS, said Khosa. 

“The board agreed with the minister that we cannot be spectators when there are people defrauding the scheme, whether they are students or non-students.” 

The board reaffirmed its resolve to work with law enforcement agencies such as the Special Investigating Unit “against those who fraudulently receive funding or benefits meant for students from poor and working class backgrounds”. 

“Someone who is an executive of a state-owned enterprise, but whose dependant is getting NSFAS, is criminal.” 


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