Cat got your tongue? Not a peep from NSFAS after new scandal hits the scheme

Tilson Manyoni, managing director at Vision Wave since 2018, also chair the National Advisory Innovation Council.(Photo:Supplied)

By Georgina Crouth

16 Jan 2024

Students weigh up their options after NSFAS fails to live up to a promise to make outstanding payments.

Despite repeated assurances that National Student Financial Aid Scheme (NSFAS) students would receive their outstanding disbursements by 15 January, the date has come and gone and beneficiaries still have no clue about when payments will be made.

NSFAS has clammed up, with no word from its spokesperson and no mention on its numerous social media platforms and website of its failure to meet its commitment.

Adding to the anxiety is yet another NSFAS scandal that has now hit the news, after Netwerk24 reported that a company linked to Higher Education Minister Blade Nzimande’s adviser was awarded a R44-million tender for the scheme.

The latest scandal comes hot on the heels of an Organisation Undoing Tax Abuse (Outa) report and leaked recordings linking Nzimande, NSFAS board chair Ernest Khosa and the South African Communist Party (SACP) to corruption involving four suppliers of the direct payment system to students.

national lab student funding, NSFAS Higher Education, Science and Innovation Minister Blade Nzimande. (Photo: Gallo Images / City Press / Tebogo Letsie)

Tilson Manyoni, managing director at Vision Wave since 2018, also chaired the National Advisory Innovation Council when Vision Wave won the five-year government contract in 2022.

Manyoni is a prominent businessman who has acted as head of policy for the Black Business Council and BRICS Council.

He was appointed by Nzimande himself, while he sat as board chairman of the Tshwane University of Technology when the juicy tender was awarded.

When asked whether these high-ranking public offices were declared when Vision Wave submitted its tender bid in September 2022, Manyoni referred Netwerk24 to NSFAS. Ishmael Mnisi, the spokesperson for both NSFAS and Nzimande, failed to respond to the Netwerk24 story.

Tilson Manyoni, NSFAS Tilson Manyoni, managing director at Vision Wave since 2018, also chair the National Advisory Innovation Council.(Photo: Supplied)

Mnisi also failed to respond to Daily Maverick’s queries about the outstanding payments, which NSFAS earlier this month said would go ahead. There is, however, a media briefing on 18 January about the overdue payments “and other issues”, he said.

In response to this latest scandal, the DA said it “must be the last nail” in Nzimande’s coffin.

Khosa has since taken leave while the corruption investigation proceeds.

Last week, Nzimande threatened to sue Outa for spreading “nefarious lies”.

On Sunday, the minister said his department and NSFAS had agreed to increase funding for “missing middle” students (whose household income is between R300,000 and R600,000 a year), who previously failed to qualify for NSFAS funding.

He also announced that Prof Lourens van Staden would stand in as interim chairperson.

Van Staden, the deputy vice chancellor of Tshwane University of Technology, will oversee the appointment of a new CEO and implement the Werksmans Report commissioned by NSFAS last year to probe corruption and “other shenanigans that were taking place, especially the service providers who are providing allowances to students”, Nzimande said.

NSFAS CEO Andile Simelane was axed in October and lost his Labour Court bid for reinstatement last week.

The SACP has denied receiving kickbacks.

Calls for Nzimande’s sacking

The DA has laid criminal charges against Nzimande and called on President Cyril Ramaphosa to fire him and instruct the Special Investigations Unit to probe the Outa allegations and the Vision Wave contract.

Chantel King, the DA’s shadow minister of higher education, said: “For the benefit of all current and future students, the President must heed the (DA Students Organisation) petition and fire Minister Nzimande.”

Last week, the South African Students Congress (Sasco) and the South African Union of Students expressed anger at the revelations of rampant corruption, mismanagement and political interference at NSFAS.

They said if the situation was not thoroughly investigated by both NSFAS and government authorities, and acted upon expeditiously, they would take to the streets.

Sasco, in particular, said it would be paying a “revolutionary visit” to the NSFAS offices.

Sasco told Daily Maverick that they are in the dark as far as the disbursement of the outstanding 2023 allowances to students is concerned.

“As such, the NEC will be having an NEC deliberation on the matter and will thereafter publicly announce as to the steps we shall take, which may not be limited to just visiting the NSFAS offices.”

The Sasco spokesperson said they will brief the media on 19 January, to “address holistically the commencement of the 2024 academic calendar post matric results issuing”.

Outa’s Rudie Heyneke said it’s not only the payment of allowances causing problems, but also the shortage of accredited accommodation.

“The academic year will be in full swing in a couple of weeks, and there is no assurance from NSFAS or (the Department of Higher Education) that they are ready.

“(The) government, DHET and NSFAS are failing the youth of our country. We need transparency from all stakeholders in the sector.”

Meanwhile, a fringe student organisation, the Socialist Youth Movement, has called for students to unite across the country — alongside workers and communities — in the coming weeks.

2023 was a “disastrous year” for the hundreds of thousands of students who depend on NSFAS, the organisation said in a press release, as NSFAS rejected thousands of applications, denied assistance to those who need it, and later defunded tens of thousands of students who were initially approved for funding when NSFAS introduced its new payment system in June.

“Scores of students were also unable to graduate and claim their certificates because NSFAS had not paid outstanding fees from the previous year, while many others complained that their allowances would mysteriously disappear after having been disbursed, leaving them without money for rent, food, academic materials and sanitation products, among other things.

“These, and other existing and emerging challenges — especially the crisis of student homelessness — were compounded by the ruthless accommodation cap that was imposed by NSFAS.” DM

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