Nzimande denies allegations he accepted kickbacks for NSFAS deals

Higher education, science and innovation minister Blade Nzimande has dismissed allegations that he, the SACP and NSFAS board chairperson Ernest Khosa were engaged in corrupt activities in NSFAS deals. 

The allegations were made by the Organisation Undoing Tax Abuse (Outa), which alleged Nzimande used money from his department to fund the SACP.

“I again assure the South African public that as minister of higher education, science and innovation, I have never used money from any of my department’s entities to fund the SACP, as maliciously suggested in the Outa report, nor have I received personal kickbacks from the service providers to NSFAS or other entities falling under my departments,” he told a media briefing in Pretoria on Monday. 

“I dismiss this baseless insinuation by Outa, some organisations, including some sections of the media, that I as minister was involved in corruption at NSFAS. These are lies that emanate from a malicious fightback campaign. My conscience is clear and I have nothing to hide or fear.” 

Nzimande said he would fight the matter legally.

Last week, a series of leaked recordings released by Outa revealed details of what the DA called “a criminal cartel” operating in NSFAS

It is alleged that service providers awarded multimillion-rand tenders to administer direct payments to students paid kickbacks to Nzimande, the SACP and Khosa.

Nzimande said his work spoke for itself, adding he had an impeccable track record of fighting corruption with NSFAS and Technical Vocational Education & Training (TVET) colleges. 

“My fight against corruption and maladministration dates back since the appointment of the administrator at NSFAS where disciplinary processes were initiated against some employees after the discovery of wrongdoing and financial misconduct by employees.

“With the current NSFAS board I have supported their initiatives to deal with ghost students who were benefiting from the scheme irregularly. I also directed the board to implement the recommendations of the Werksmans report without fear or favour. Part of these recommendations is the termination of the contracts of the direct payment service providers.” 

Addressing the allegations that he redirecting fund from his department to the SACP, Nzimande acknowledged he did a lot fundraising for the party but all of these were above board.

“However, with the strict guidance from the SACP, I am not permitted to raise funds from entities under our departments or knowingly from service providers in that space.”

Nzimande said the allegations against him and Khosa “are part of a nefarious fightback 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 of the NSFAS chairperson.

“You would recall that a finding was made by Werksmans Attorneys that the appointment of four direct payment service providers was irregular and that in line with the recommendations of the report the contracts of these service [providers] were to be terminated and that in doing so we had to ensure students are not affected negatively.

“It is our view therefore that the leaked recordings are part of a nefarious fightback campaign that is meant to undermine and frustrate the decision of the NSFAS board to start with the legal proceedings to terminate the contracts of these four direct payment solution service providers, as recommended by the Werksmans report.” 

Nzimande added that he would take action by meeting the NSFAS board to discuss the allegations. 

He said they had and would continue to work with the police to root out corruption within the NSFAS 

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