The National Student Financial Aid Scheme (NSFAS) has rejected as baseless OUTA’s claims that it’s using companies that are not registered financial service providers to pay allowances into students’ bank accounts.
In a 59-paged report, OUTA also alleges that the four companies are relatively new, with very little proof of experience as fin-tech firms.
The scathing report by the advocacy group, which was released on Tuesday, is an update of an October investigation, which followed public outcry over the direct payment of allowances to NSFAS beneficiaries.
The report comes a week after several institution of higher learning across the country were forced to suspend physical classes, as students were protesting over the new digital banking system called eZaga.
OUTA further alleges that the tenders awarded to companies were irregular.
Speaking to YNews, NSFAS spokesperson Slumezi Skosana, says this is not true.
Last week, Tshwane University of Technology Students’ Representative Council (SRC) President, Keamogetswe Masike, told YNews that they had opened the case of corruption against the scheme over its decision to allegedly use a fly by night system.
The students allege that some of their counterparts are forced to go to bed on empty stomachs, while the Department of Higher Education remains mum over the crisis.
Skosana says students should have contacted NSFAS over their accounts being hacked.
The financial aid scheme says while it is not aware of any case opened against the organisation, it has has heard that students have submitted a portfolio of evidence alleging that their accounts were ransacked without their knowledge.
Written by: Nokwazi Qumbisa