Staunch ally: ‘Ramaphosa will not knife Nzimande’

A leaked recording released by the Organisation Undoing Tax Abuse (Outa) alleging the involvement of Higher Education and Training Minister Blade Nzimande and National Student Financial Aid Scheme (Nsfas) board chair Ernest Khosa in siphoning millions from the fund may not move President Cyril Ramaphosa to act against the minister.

Latest scandal implicating Nzimande

This is the latest scandal implicating Ramaphosa’s tainted senior political ally.

It comes after recent allegations of Nzimande being mentioned with Labour Minister Thulas Nxesi, Finance Minister Enoch Godongwana and ANC secretary-general Fikile Mbalula, on allegations of soliciting 10% from a R5 billion Unemployment Insurance Fund project.

Outa yesterday released voice recordings of two meetings between Khosa and a representative of a service provider.

It revealed how service providers allegedly paid millions of rands in kickbacks to Nzimande and Khosa, with at least R1 million paid to the SA Communist Party (SACP) – all in return for tenders.

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Ramaphosa unlikely to act against Nzimande

Independent political analyst Sandile Swana said Ramaphosa was unlikely to act against his staunch ally, thereby closing ranks within the tripartite alliance in the run-up to this year’s polls.

“Politically, it is unlikely that Ramaphosa will act against Nzimande who is a political pillar and bodyguard of an insecure president.

“He may call for the waiting of investigations to be concluded, for parliament to exercise its oversight role and for the Hawks to have a say in this,” said Swana.

“By the time Ramaphosa receives those reports, elections will be in progress, with the ANC unlikely to outrightly win the elections and changes expected in a new Cabinet.

“What is worrying is that criminals who are looting the state believe that top legal and audit firms can be manipulated to produce fraudulent outcomes of investigations into corruption.”

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‘A serious investigation, raising concerns’

Corruption Watch executive director Karam Singh said what Outa had uncovered reflected “a serious investigation, raising concerns”.

“I trust that the SIU (Special Investigating Unit), which has already been mandated to investigate in this space, is able to pursue accountability and recover irregular assets.

“The minister should respond promptly and we expect consequences for misconduct.”

Nsfas this week conceded that at least 20 000 students countrywide were still awaiting payment of their 2023 allowances, with the payment system to students having collapsed.

This was after four new service providers – Coinvest Africa (Pty) Ltd, Tenet Technology (Pty) Ltd, Ezaga Holdings (Pty) Ltd and Norraco Corporation (Pty) Ltd – were awarded the tender for facilitating direct payments to students since July 2023.

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Nsfas “noted with outrage” Outa’s statement

Nsfas “noted with outrage” Outa’s statement calling for Nzimande and Khosa’s resignation.

“The Nsfas board chair, Ernest Khosa, strongly dismisses with contempt this voice recording and insinuation that he has received money, meant for him, Minister Nzimande, the SACP and other third parties,” it said.

“The board chair will at an appropriate time take the public into confidence on the recordings in circulation and attempted threats on his life, by some unscrupulous individuals – following the implementation of the Werksmans Attorneys report and the fight against corruption within Nsfas.”

Call for Ramaphosa to fire Nzimande and Khosa immediately

Outa investigations manager Rudie Heyneke said: “If they don’t resign, we call on President Cyril Ramaphosa to fire them immediately.”

Among some of its revelations, the Outa recordings leaked by a whistle-blower confirmed:

• Two separate meetings between Khosa and a representative of a service provider;
• On 16 August, 2023, Nsfas CEO Andile Nongogo was to be placed on special leave while a board-ordered probe into his conduct was being undertaken; and
• Khosa planned to react to the Outa report by putting him on special leave and then report to parliament on the steps the board would take to handle the Nsfas situation.

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