The Administrator of the National Student Financial Aid Scheme (NSFAS), Freeman Nomvalo, has announced the initiation of legal proceedings to remove four service providers who failed to pay students’ monthly allowances.
The entities Ezaga Holdings, Coinvest Africa, Narraco Corporation, and Tenet Technologies were appointed to process payments to NSFAS beneficiaries despite technical glitches and expensive bank charges.
These contract terminations follow recommendations by Werksmans Attorneys, which found that these service providers were appointed irregularly.
Nomvalo stated that NSFAS will now handle direct payments to students.
“It will resolve the problems specifically that relate to students. Some of the unrest that has taken place on campuses and TVET colleges in particular, was about issues where students would know that money had come through, it would reflect on their accounts, and then the money would suddenly disappear,” Nomvalo said.
He added, “Or for some reason, there would be other discrepancies with the payments that were noticed by students, and that would make students not to be happy with that scenario. That is a thing of the past now.”
