Axed Nsfas CEO Andile Nongogo suffers court blow

The Labour Court has dismissed the application by former National Student Financial Aid Scheme (Nsfas) CEO Andile Nongogo to have his sacking declared unlawful and void.

In October, the Nsfas board terminated Nongogo’s contract after investigating allegations related to the appointment of direct payment service providers. This decision came after Nongogo was placed on special leave in August amid controversies surrounding the scheme’s direct payment contract.

Outa vs Nongogo

The Organisation Undoing Tax Abuse (Outa) had published a report highlighting the “questionable” awarding of the Nsfas direct payment contract.

The report implicated Nongogo in a potential conflict of interest regarding the service providers’ appointments.

ALSO READ: Nsfas board terminates CEO Andile Nongogo’s contract

After numerous calls for his suspension until investigations into the allegations were completed, Nsfas placed Nongogo on special leave as it launched its own investigation.

A report by Werksmans Attorneys and advocate Tembeka Ngcukaitobi flagged a potential conflict of interest in the appointment of fintech service providers.

Another concern raised in the report was the failure to conduct thorough due diligence on the service providers.

ALSO READ: Nsfas CEO Andile Nongogo placed on special leave as direct payment contract probed

In light of these findings, Nsfas board chair Ernest Khosa announced that the board had written a letter to Nongogo, granting him an opportunity to explain why his contract shouldn’t be terminated.

Nsfas board ‘vindicated’

Nongogo’s challenge to his contract’s termination hit a snag on Monday when the Labour Court ruled in favour of the Nsfas board.

Judge MB Mahalelo also dismissed with costs Nongogo’s application to strike out certain paragraphs contained in the Werksman Attorney’s report.

ALSO READ: Don’t let Andile Nongogo near public money – Outa

“The decision by the court vindicates the Nsfas board in terminating Mr Nongogo’s contract of
employment following his irregular involvement in the appointment of the direct payment service
providers,” said Nsfas.

“The Nsfas board views the Werksmans Attorneys report as a necessary and important measure to
propel Nsfas to a much more elevated level of consciousness to fight corruption and the capture of
Nsfas by some unscrupulous people masquerading as business people.

“Furthermore, this report also serves as a measure for Nsfas to further strengthen its own internal supply
chain management systems and controls.”

Nsfas said it would continue with its legal processes to terminate contracts of direct payment service providers.

ALSO READ: Nsfas CEO’s contract in question after damning investigation

“The termination of the direct payment service providers will be handled with due care not to disrupt the
disbursement of the allowances to students in the 2024 academic year.”