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Nzimande vows to sue Outa for spreading ‘nefarious’ lies

The higher education minister says Outa’s report damages his ‘good name’, as well as that of his department and the government.
Nzimande vows to sue Outa for spreading ‘nefarious’ lies

Higher Education Minister Blade Nzimande has called a damaging report by the Organisation Undoing Tax Abuse (Outa) a “nefarious” lie that emanates from a malicious “fight-back” campaign.

This, he says, has damaged his good name, threatened trust in the students’ payment system and resulted in death threats aimed at the chairperson of the National Student Financial Aid Scheme (NSFAS).

At a press briefing on Monday, Nzimande took aim at the report and recordings of conversations between NSFAS chairperson Ernest Khosa and two suppliers in which they discuss alleged kickbacks, mismanagement and political meddling in the scheme.

Nzimande was identified as a key figure in the saga.

Read more in Daily Maverick: Calls for action after recordings expose alleged cosy relationship between Blade Nzimande, NSFAS chair Ernest Khosa and service providers

Four suppliers — Coinvest Africa (Pty) Ltd, Tenet Technology (Pty) Ltd, Ezaga Holdings (Pty) Ltd and Norraco Corporation (Pty) Ltd — were appointed in June 2022 to handle direct payments to students, which Outa says they were ill-equipped to do, causing the NSFAS payment system to collapse.

Months after these suppliers were appointed, Outa sounded the alarm that awarding the tender to these service providers would cause payment issues. 

It has also published several reports exposing how funds were being mismanaged and the role of former NSFAS CEO Andile Nongogo (previously the CEO of the Services Sector Education and Training Authority, or SSETA) in the alleged corruption at NSFAS. 

Among the issues cited by Outa are authorised payments of R93,579 for 20 branded T-shirts (costing R4,679 each); R264,340 for six branded umbrellas (R44,057 per umbrella); R36,300 to design a letterhead, and R668,200 to print 100 copies of the Services Seta Annual Performance Plan. This happened in 2017/8 while Nongogo was the CEO at SSETA. He was the official responsible for managing the tender in terms of the Service Level Agreement — awarded to Five Stars Communication and Projects, which also belongs to the owner of Star Sign and Print, Anastacia Baloyi.

On Thursday, Outa released the recordings, transcripts of the recordings and a detailed 51-page report on the alleged corruption, in which Khosa, an unnamed supplier and Thula Ntumba, the husband of Tshegofatso Ntumba (a director in Coinvest, one of four service providers appointed to disburse payments to students), discuss corruption investigations and alleged kickbacks for tenders, favours and “protection”.

Nzimande appointed both Nongogo as CEO of NSFAS and Khosa as the chairperson of the NSFAS board. Nzimande remains associated with the SA Communist Party (SACP), after serving as its general secretary for 24 years.

Ntumba is heard in the recording mentioning a gift of T-shirts and bags for the SACP’s 2022 conference — provided through his wife’s company, Star Sign and Print — and allegedly gave the party R1-million.

The SACP has denied receiving favours, with spokesperson Alex Mashilo telling Daily Maverick that they have “never and will never” approach anyone to seek “illegitimate” funding. 

“We will not allow anyone to engage in shenanigans and to try and co-opt the name of our party into those shenanigans. We stand firm in our stance against corruption. We saw the transcripts of the recordings by the third party from Outa, but we remain firm in what we have said.”

Nzimande’s department tweeted a clumsy response on Friday, saying he rejected the malicious allegations.

“The minister views the allegations… as reckless and largely based on gossip and are intended to determine a smooth start to the 2024 academic year. Furthermore, given the damaging allegations continued in this report, the minister reserves the right to take the necessary legal action.”

Ntumba couldn’t be reached and requests for comment from Coinvest and Tshegofatso Ntumba went unanswered.

There was no response from either NSFAS or Khosa.

On Monday, Nzimande called Outa’s report an attempt to tarnish his image as well as that of the department and the government. 

“I have never used any money from any of my department’s entities for the purpose of funding the South African Communist Party, as maliciously and forces suggested in the Outa report. Nor have I received any personnel kickbacks from any of the service providers or any of the other entities falling under my department. I therefore wish to dismiss this baseless insinuation by Outa.”

He said his conscience was clear and he had nothing to hide, which is why he reserved his right to take the necessary legal action. 

“I’ve also voluntarily decided that I’m going to subject myself to the relevant legal processes and ethics bodies of the African National Congress, its integrity committee, and the South African Communist Party (and) its central ethics commission.”

Meanwhile, Outa tweeted that Nzimande was welcome to sue them. 

“Outa will defend any legal action taken against us. (It’s not the first time we are threatened. NSFAS threatened us with defamation because we said we uncovered #corruption with the tender contracts of the four service providers. Something which the #WerksmansReport confirmed.)

“And if #BladeNzimande has nothing to hide, @CyrilRamaphosa @PresidencyZA must broaden the scope for the @RSASIU without fail to also include this. And also, remember that #AndileNongogo himself referred to these voice recordings where Khosa is discussing him being fired.”

The DA has questioned what it called “systemic corruption” in the department and said it would lay criminal charges against Nzimande and wants the NSFAS board to be declared delinquent.

Leave of absence


The NSFAS board said on Wednesday, 10 January 2024 that Khosa had “voluntarily tabled a notice of 30 days’ leave of absence… to enable the board to deal with all the allegations against him as contained in the recordings distributed by the Organisation Undoing Tax Abuse”.

During a special meeting to discuss the scheme’s state of readiness for the 2024 academic year, the chairperson had reiterated to the board that he had “never received any financial gratification for his personal use or facilitated any” for the minister of higher education or the South African Communist Party. 

The board “would like to emphasise that this decision should not be interpreted as an admission of guilt on the part of the chairperson”.

Adding that it was now the minister’s “fiduciary responsibility” to appoint an acting board chairperson, the board described Khosa’s decision as “honourable” and “brave” and “a responsible and conscious step to advance good corporate governance, transparency and accountability”. 

The board also said it had resolved to appoint an independent legal firm to look into the veracity of the allegations against Khosa. The firm – soon to be announced – would be expected to submit its findings within 30 days of its appointment. DM

This article was updated on 11 January 2024 to include a statement from the NSFAS board.

Comments

eddyvandiermen Jan 9, 2024, 07:49 AM

A sad post-script to an, otherwise ,well disguised politically misleading career . Allegedly .

Mohammed Bashir Khan Jan 9, 2024, 08:16 AM

Like Oscar Wilde, who sued the Marquis of Queensbury for libel , Blade will come off second best.

Fanie Rajesh Ngabiso Jan 9, 2024, 08:17 AM

I'm actually struggling with the term "nefarious lie". Is it different from a "firepool lie"?

Donald Knight Jan 9, 2024, 10:09 AM

Or is there a mendacious liar floating about?

Barrie King Jan 9, 2024, 08:17 AM

Another weak & futile attempt at disgracing the accuser when irrefutable facts are presented. Same answer as Zuma against the author of The President’s Keepers” and Ace against the exposer of his misdoings, ANC against De Ruyter, etc, etc! We are still waiting for all those promised legal actions!!! Another 30 years perhaps??

Rob Glenister Jan 9, 2024, 08:21 AM

The words "Blade Nzimande" and "good name" do not belong in the same article, let alone the same page or same paragraph. Time to go, Squeaky, because clean you are not.

phophi Jan 9, 2024, 08:24 AM

Blunt Nzimande is a seasoned and serial crook. Remember him and Willie Madisha money saga?

Confucious Says Jan 9, 2024, 01:16 PM

Hahaha classic! Blunt Nzimande the Crooked Commy!

Ian McGill Jan 9, 2024, 08:40 AM

Get it in your head. There is not one government contract issued without a backhander involved. It is the DNA of Africa.

famofcon Jan 9, 2024, 11:39 AM

One needs to be "pragmatic", to quote another SACP intellectual. Everyone must eat a little.

Stu McCro Jan 9, 2024, 02:40 PM

It is in the DNA of governments worldwide.

Johann Olivier Jan 10, 2024, 06:54 AM

Oh NO! The ANC is special. Believe me. They make Putler blush. Perhaps because they're so stupid when they 'feed'.

Iam Fedup Jan 9, 2024, 08:41 AM

Let him go to court and prove his “innocence.” I’ll bet my meagre pension that he wouldn’t dare, for he may actually have to account for his actions. Hot air.

Middle aged Mike Jan 9, 2024, 08:41 AM

“I’ve also voluntarily decided that I’m going to subject myself to the relevant legal processes and ethics bodies of the African National Congress, its integrity committee, and the South African Communist Party (and) its central ethics commission.” Ja, that will convince a few retarded folk. The ex-kleptocommie in chief could just as well have a layer of whitewash applied to his exoskeleton. As to the threat of legal action against OUTA, pull the other one.

David Katz Jan 9, 2024, 08:47 AM

Will he be suing with his own money or the departments. How many students will not get funded because Blade believes he has a good name.

Peter Relleen Jan 9, 2024, 09:03 AM

"Just because you did it, doesn't mean you're guilty ". (author unknown to writer). SO many politicians use this argument, it seems.

Leonora Watson Jan 9, 2024, 09:07 AM

He has damaged his own reputation. Typical ANC trying to shift the blame.

Johann Olivier Jan 10, 2024, 06:59 AM

Really, Leonora? You give him way too much credit. He never had a reputation. The putative legal action would fail on two grounds: truth & no proven loss.

colleen Jan 9, 2024, 09:10 AM

New year, same sh**t

Beyond Fedup Jan 9, 2024, 09:15 AM

The useless, verbose, vacuous and conflicted Nzimande needs absolutely no assistance in tarnishing his image - he has done that all by himself with aplomb and continues to do so. He is your typical anc "leader" that we have come to know, at SA's cost, and despise intensely - lying, thieving, hypocritical, immoral, parasitic and without any iota of integrity, common decency and honesty. To hell with this lot of scumbags!

Richard Fearon Jan 9, 2024, 09:32 AM

Let Mr Mzimabde bring his court action , what makes me angry is that we, the tax payer will fund it

Ashley Stone Jan 9, 2024, 09:32 AM

Thou doth protest too much!

Karan Thakor Jan 9, 2024, 09:40 AM

Corruption accused officials are guilty until proven innocent, not the other way around. If you cant follow due process, why should the courts?

Dragon Slayer Jan 9, 2024, 09:46 AM

Sue OUTA - what a joke! It is certainly also sheer bluster that will never end up being challenged in court. So typical of yet another compromised ANC "comrade in crime'. OUTA will certainly have done their homework and verified the source of their information. BTW - kakistocracy is a real word and defines this government!

zantwijk Jan 9, 2024, 09:51 AM

These crooks must do what they tell everyone....SUE!!!.........However, they won't because they know that in a court of law all evidence will be presented, and no one can rely on 'hearsay'....It's the story of the ANC, as soon as they start threatening litigation, we all know they are as guilty as the thief who enters my house and tells me he is just visiting me?

annie.conw Jan 9, 2024, 10:10 AM

When an anc member says ‘I have never’ ……

megapode Jan 9, 2024, 10:19 AM

This could get interesting. Firstly the veracity of OUTA's dossier will need to be established. And it would need to be shown that the Minister was aware of what was going on. But what I don't get is why Nzimande reacted at all. OUTA are no threat unless they initiate a court case, and they haven't. Perceptions of him would be hardened but not changed by this report. He should have just said nothing or made a vague comment about having noted that OUTA had issued a report.

Colin Braude Jan 9, 2024, 10:26 AM

Like, present evidence under cross-examination in s public court? I would not have thought that Cde Blade's preference.

Harold Wener Jan 9, 2024, 11:16 AM

I take it the New Years new broom will simply sweep this under the old carpet. The ruling ( actually Non ruling , ruling party ) Party provides so much ammunition for it to be taken down and out, but despite years of corruption , it just keeps on going. Is there an end in sight?

Joe Irwin Jan 9, 2024, 06:12 PM

There can't be much room under the old carpet. Maybe the ANC got a new larger carpet for Xmas.

Eulalie Spamer Jan 9, 2024, 11:17 AM

The Minister of Higher Education is sub-literate. Did he get this appointment because the ANC needs the SACP onside during elections? And is it possible that turning a blind eye to allegations that his fingers are in the cookie jar of NSFAS is a means of buying his loyalty? Will the President open the can of worms that OUTA has exposed?

Mkulu Zulu Jan 9, 2024, 11:20 AM

OUTA would love to be sued by Mampara Nzinmande, a case OUTA cannot lose!

Gregory Scott Jan 9, 2024, 11:26 AM

Deny, deny and deny Along with sue, sue, sue This is the gangster way Repeat

chatterbox Jan 9, 2024, 11:53 AM

Threatening to sue and actually suing are two different things. My bet is he won't sue because he does not have a case. In other words, he is most likely guilty.

PETER BAKER Jan 9, 2024, 12:22 PM

The part I really love is this ANC and SACP "...ethics commissions" BS....within the ranks of both political parties, there isn't a single honest, ethical, or upright person. They are all rotten to the very core....to their very DNA they are putrefied: no exceptions.

Deon Botha-Richards Jan 9, 2024, 12:37 PM

Of course you will submit to the ANC Ethics Committee Blade. You know how toothless and incompetent they are at making findings against members.

Belinda Cavero Jan 11, 2024, 12:51 PM

Those were my exact thoughts, too. Eish, this corruption is so relentless and disheartening.

malherbel Jan 9, 2024, 12:41 PM

Rotten to the core - so sad for the youth. But it's also your job to get rid of the ANC government at the polls. Your vote - your future.

Gert Brits Jan 9, 2024, 12:52 PM

We are plagued with unbelievable corruption we live on the edge of total disaster

Gerrie Pretorius Jan 9, 2024, 01:14 PM

@blade - just blame Jan, WMC and aparthate and Bob’s your uncle. You are not guilty ….

Peter Oosthuizen Jan 9, 2024, 02:39 PM

He really doesn't have to worry about his good name - along with every other crook in the ANC

hugo68 Jan 9, 2024, 02:56 PM

Amazing how they can dispute facts , but they know nothing will happen to them , the powerful stays immune from prosecution, it really is time to take back the moral high ground from this corrupt ANC. The people must take action, doing nothing will be our own downfall.

Helen Swingler Jan 9, 2024, 04:42 PM

Trust in the student pay system and NSFAS broke some time ago, Minister Nzimande. I can understand why you may not have noticed. As for good names, such slippery things in government.

les.oconnell Jan 9, 2024, 05:38 PM

So Nzimande has decided to subject himself to the ANC Integrity committee and the SACP's Ethics commission. In context, these two terms represent two of the greatest oxymorons on earth. Other than hearing of the terms integrity and ethics, these terms have been demonstrated to be alien to the ethoses of both organizations.

T'Plana Hath Jan 10, 2024, 09:59 AM

ANC Integrity committee and SACP’s Ethics commission, "two of the greatest oxymorons", whereas Blad is just a 'regular' moron, LOL.

annefelgate Jan 9, 2024, 05:39 PM

The best part of this is the comments from the readers But I can’t see any My husband is chortling next to me and short of wrestling his phone away from him, I can only sulk Hopefully it is only a technical glitch

Alexalexander76 Jan 9, 2024, 05:50 PM

Sa! Take them on Nzimande. Jou bang broek......

Matthew Quinton Jan 9, 2024, 06:04 PM

A "VOW" from a member from the ANC literally has ZERO value. The top brass of the ANC have no soul, no self respect, no humanity, no class, no education and deserve no respect of even attention. "Vow", "Promise" etc etc blah blah blah. Nothing these cretins say means anything anymore. They are vile creatures, the lowest denizens of the globes political swamp dwellers. Compared to the average senior ANC parliamentarian, trump is angelic paragon of honesty, dignity and truth.

Trenton Carr Jan 9, 2024, 08:04 PM

I find these fat cats bouncing on a hot tin roof very entertaining, and the timing is impeccable.

Trenton Carr Jan 9, 2024, 08:17 PM

What's also funny is you have a non profit social rights organization that gets its funding from a tiny fraction of the population giving the anc stick because of deep pockets, but the anc with a supposedly majority citizen support cannot pay it's own wages. ?

Johan Buys Jan 9, 2024, 08:33 PM

If he wins a case for slandering his reputation he can look forward to at least 1000 roubles judgement!

Sihle Ngcobo Jan 9, 2024, 09:49 PM

“The minister views the allegations… as reckless and largely based on gossip and are intended to determine a smooth start to the 2024 academic year. Furthermore, given the damaging allegations continued in this report, the minister reserves the right to take the necessary legal action.” A tweet from the department of education, yes - higher education.

Philip Machanick Jan 9, 2024, 09:53 PM

I’ve been wondering why NSFAS can’t be replaced by a simple calculation of how much to give each university and a direct transfer to each university, since they are the ones who disburse the funding to students. Here’s my answer.

davidspencerfranklin Jan 10, 2024, 07:44 AM

What good name?

Karl Nepgen Jan 10, 2024, 08:28 AM

?

William Kelly Jan 10, 2024, 08:41 AM

I wonder if this muppet minister can listen for meaning? He certainly can't read for meaning.

rcwatson Jan 10, 2024, 12:43 PM

Whatever happens he will be cadre protected by the NPA.

abmeyer Jan 11, 2024, 05:47 PM

In Zulu it is called "icala lingumphikwa" the charge is refuted, translated... The ANC Cabinet, the not so clever Blade Nzimande, the latest to do so, in so many cases in the past, threaten or threatened direct consequences, my recollection says none have made it to Court, Refer to de Ruyter’s Eskom, as an example, Mr Do Dololo, Mbalula and others.... Sarcastically, they bark like Rottweilers but bite like Miniature Dobermans

Howard L. Jan 24, 2024, 12:43 PM

Note how often corruption accused members of the ANC et al fire back with "we will sue" and then then ..... nothing ! That said, even after damning allegations against various members of the "elite" - nothing seems to happen.