The Organisation Undoing Tax Abuse (OUTA) has laid criminal complaints against the National Student Financial Aid Scheme’s (NSFAS) CEO Andile Nongogo along with two other individuals for suspected corruption and fraud. The complaints relate to his role with the Services Sector Education and Training Authority (SSETA)
OUTA wants the South African Police Service (SAPS) to investigate Nongogo, Duduzile Mwelase, a senior manager at SSETA, along with Anania Baloyi and Ngwenya Baloyi, both from Five Stars Communications and Projects CC (Five Stars). Five Stars was a service provider for the SETA.
The criminal complaints relate to the over-inflation of a specific tender, awarded to Five Star. At the time, Baloyi was the sole member of Five Star, while her son, Ngwenya Baloyi, was the company’s managing director.
OUTA portfolio manager Rudie Heyneke says Five Star was paid R36.962 million to supply several branded items and related services to SSETA. The company provided branding for a tender box which cost more than R300,000.
It is alleged that Five Stars over-inflated their bid for the branding of the tender box by 8000% and cost R302,010. OUTA says NSFAS CEO Andile Nongogo’s signature appears on the invoice which in their view indicates that he should have been aware of the quoted price.
Nongogo’s signature appears on the invoice, which in our view indicates that he should have been aware of the quoted price. On 12 February 2018, Duduzile Mwelase, the senior manager responsible for SSETA’s brand management, took delivery of the branded box. Nongogo then authorised payment of the invoice and on 1 March 2023 Five Star was paid R302,010 as stated on the invoice.
OUTA sought clarity on several issues, including proof from SSETA that the tender box was recorded in the asset register, and at which value. The tender box was recorded in the asset register at the value of R9,690.
Heyneke says the inflated prices charged by service providers are unacceptable and believes that companies who charged exorbitant prices and public officials who approved payment of inflated tenders, should all be held to account.
In addition, OUTA wants such companies to be listed on National Treasury’s restricted suppliers’ data which prevents them from doing business with the state.
NSFAS Responds To CEO's Corruption Allegations
NSFAS has noted OUTA’s action and assured members of the public that the reported wrongdoings are unrelated to Nonogogo’s responsibilities and duties at the financial aid scheme.
We also note that the alleged transgressions have nothing to do with Nongogo’s current responsibilities and mandate at NSFAS.
NSFAS says they are disappointed that members of the media are attempting to associate these offences that occurred during Nongogo’s time as the head of SSETA with NSFAS.
They add that Nongogo has faced scrutiny from the media since implementing new policies concerning NSFAS allowance payments and student accommodation.
NSFAS will proceed to vigorously implement policies which are sanctioned by the Board and the shareholder and will not succumb to character assassination attempts [disguised] as concern for the rule of law.
They add that Nongogo has also been subjected to numerous attacks via text messages. These attacks are currently being addressed through security measures.
