Nzimande defends NSFAS payment system
Nzimande is all but praise for the new direct payment system by NSFAS. However, over 350 000 students are yet to receive their allowances.
Higher Education Minister Blaze Nzimande, has praised the new direct payment system recently implemented by the National Students Financial Aid Scheme. However, the process has left thousands of students not receiving their allowances.
STUDENTS ACROSS THE COUNTRY WAS THE NEW SYSTEM SCRAPPED
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Students across the country protested over their dissatisfaction over the new payment system citing lack the bureaucracy in signing up as well as continuously being able to access your money, the exorbitant bank charges and the lack of a set payment date.
Nzimande has condemned the incidents of violent protests.
“Violence will never justify or cannot be associated with any legitimate forms of protest and should be condemned by all, including student leaders” Nzimande says.
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Statement following the meeting held with the Board of the National Student Financial Aid Scheme (NSFAS) on 08 August regarding the 2023 funding decision and the payment of allowances to students. pic.twitter.com/QXSoMqIvqN
— Minister Blade Nzimande (@DrBladeNzimande) August 11, 2023
NZIMANDE NOT SWAYED BY OUTA REPORT
A recent report by OUTA(Organisation Undoing Tax Abuse), revealed that the four companies awarded with the tender to handle the direct payment system for NSFAS were not registered as financial services providers.
Ezaga Holdings – held an affiliated banking licence with Access Bank. A banking licence or affiliation with a bank with a banking licence was a compulsory bid requirement. Two of the successful bidders, Norraco Corporation and Tenet Technology, were also not registered as VAT vendors when they submitted their tenders.
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Despite the findings by OUTA, with investigations to be done by the Office of the Public Protector and the SIU (Special Investigative Unit) Nzimande says the four companies fairly won the bid.
“The appointed partners(the four companies) are sponsored by banks that possess commercial banking licences. They additionally have both Payment Association of South Africa licenses and Affiliate Banking licences in order for them to have a sponsored banking license to operate and process payments”, he added.
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