Outa calls on SIU to probe ex-NSFAS board chair Ernest Khosa

The Organisation Undoing Tax Abuse (OUTA) is urging the Special Investigating Unit to probe former NSFAS Board chairperson Ernest Khosa.

The Department of Higher Education confirmed Khosa’s resignation on Thursday, 11 April.

OUTA WANTS SIU TO PROBE EX-NSFAS BOARD CHAIR ERNEST KHOSA

OUTA’s Investigations Manager, Rudie Heyneke, said Khosa’s resignation seems to be a case of history repeating itself.

Heyneke said in 2005, Khosa also resigned from the Mpumalanga Economic Empowerment Corporation (MEEC), days before a forensic investigations report by PWC on allegations of corruption against him was due to be released.

“OUTA also calls on the SIU to include the allegations against Khosa in their NSFAS investigation that was proclaimed by the President in 2022. If Khosa or any other NSFAS employee is found wanting, they must be held accountable. The Minister should also consider a delinquent director application against Khosa,” she said.

Earlier this year, the SIU confirmed that it successfully recovered a staggering R737 926 351 from various institutions as part of its ongoing investigation.

“South Africans have seen far too often that implicated persons in high profile positions resign when adverse findings are made against them, merely to return to positions of power some years later. These positions often are those of a non-executive director on the board of another state entity. Khosa is an exceptional example of this since he is also the chairperson of the South African Civil Aviation Authority (SACAA) board.”

Furthermore, the organisation said the TGR report on Khosa should be made available to the NSFAS board immediately if it has not already been handed over.

“We trust that this report will be released to the public and not kept under wraps, as was the case with the Werksmans report, which investigated allegations against NSFAS CEO Andile Nongogo,” Heyneke said.

Former Eskom CEO Andile Nongogo who fired after Outa released its report. Image: GCIS.

CONCERN OVER NON-PAYMENT OF ALLOWANCES

On Thursday, Nzimande said he is deeply disturbed by the non-payment of student allowances.

In 2023, the NSFAS Board said as part of recommendations the contracts of the four direct payment service providers will be terminated. However, this has not been implemented.

Heyneke said nothing has been done regarding these recommendations other than several mentions that they will be implemented.

“Ernest Khosa and the acting chairperson said this on various occasions and on different platforms. When will this happen, and when will the rest of the Werksmans recommendations be implemented?” Heyneke asked.

Lastly, Heyneke said they believe that the payment of allowances to students should be managed by NSFAS internally without a third party being involved.

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