The four fintech companies were often blamed for delayed payments of allowances, and sometimes students allegedly experienced dubious withdrawals from their accounts. Some of them even took to the streets to voice their frustrations earlier this year.
Mnisi said the order granted was reached without considering the validity of the tender award on which the contract is premised.
“The Special Investigating Unit (SIU) and NSFAS's application to set aside the contract is already pending at the Special Tribunal. NSFAS stands by its position of implementing the recommendations made in the Werksmans report and will appeal this judgment, in addition to the application at the Special Tribunal,” said Mnisi.
Olivier said the order will stay in place until either the court or the Special Tribunal issues a final decision regarding the enforcement of the service-level agreement between eZaga Holdings and NSFAS.
High court rules in favour for eZaga to pay NSFAS allowances
Student scheme to appeal judgment
The National Student Financial Aid Scheme (NSFAS) is set to appeal a high court judgment ordering the restoration of the contract of one of the service providers contracted to disburse allowances directly to students.
The judgment, passed on July 15 by acting judge Sven Olivier at the Western Cape High Court, interdicts NSFAS from taking further steps to terminate its contract with eZaga.
NSFAS has also been interdicted from implementing a payment mechanism that allows it to pay allowances directly into students’ bank accounts.
According to the department of higher education spokesperson Ishmael Mnisi, the judgment only pertains to NSFAS’s actions after the Werksmans report, which recommended terminating the contract with eZaga due to procurement irregularities.
The report found significant issues, including a conflict of interest involving the fund's CEO Andile Nongogo, irregularities in the bid process for direct payment service providers, and the lack of a feasibility study before implementing the direct payment system.
The report recommended terminating contracts with the companies involved, dismissing Nongo and ensuring future projects include comprehensive feasibility studies.
The ruling also benefits three other service providers: Coinvest Africa, Norraco Holdings, and Tenet Technology, which were awarded the tender together with eZaga to disburse allowances.
The four fintech companies were often blamed for delayed payments of allowances, and sometimes students allegedly experienced dubious withdrawals from their accounts. Some of them even took to the streets to voice their frustrations earlier this year.
Mnisi said the order granted was reached without considering the validity of the tender award on which the contract is premised.
“The Special Investigating Unit (SIU) and NSFAS's application to set aside the contract is already pending at the Special Tribunal. NSFAS stands by its position of implementing the recommendations made in the Werksmans report and will appeal this judgment, in addition to the application at the Special Tribunal,” said Mnisi.
Olivier said the order will stay in place until either the court or the Special Tribunal issues a final decision regarding the enforcement of the service-level agreement between eZaga Holdings and NSFAS.