The National Student Financial Aid Scheme (NSFAS) intends to appeal a recent Western Cape High Court ruling over its bid to cancel the direct payment contract by eZaga Holdings, one of four companies contracted to pay student beneficiaries on behalf of NSFAS.
Earlier this month, the students financial aid scheme announced that it had withdrawn direct payments to the service providers and reverted to paying through institutions.
eZaga Holdings then applied for an interdict to stop NSFAS from cancelling its five year contract. On Monday, the Western Cape High Court ruled in favour of the company.
The court ordered NSFAS to issue payment instructions to eZaga to continue paying student allowances. The company along with Coinvest Africa, Tenet Technology and Norraco Corporation, was awarded a five year term to disburse direct payment of allowances to university students and TVET colleges, in July 2022.
Reacting to the court ruling, NSFAS spokesperson Ishmael Mnisi said, the financial aid scheme would be appealing the court ruling: “NSFAS wishes to emphasise that the judgement is limited to the circumstances surrounding actions taken by NSFAS post the Werkmens Attorneys report, which recommended that the contract with eZaga and others be terminated on the basis of procurement irregularities.
“The judgement seeks to restore eZaga’s position with NFSAS. The order was reached without taking into consideration the validity of the tender award on which the contract is premised. The Special Investigative Unit (SIU) and the NSFAS’ application to set aside the contract is already pending at the Special Tribunal,” he said.
Mnisi added that NSFAS would continue to fight for the termination of the contract: “NSFAS stands by its position of implementing the recommendations made by the Werkmans Attorneys report and will appeal this judgement, in addition to the application at the Special Tribunal.”
The ruling comes just days after the The EFF Students Command (EFFSC) welcomed the termination of contracts held by four service providers, which were reportedly irregularly appointed by NSFAS to disburse the student allowances.
In a statement, dated July 11, the students financial scheme announced that it had withdrawn direct payments to the service providers and reverted to paying through institutions.
“Following a meeting between Universities South Africa (USA) and the National; Student Financial Aid Scheme (NSFAS) Administrator, Mr Freeman Nomvalo, NSFAS has resolved that for the remainder of the 2024 academic year, university students’ allowances will be distributed through institutions (universities).”
The Star