The National Student Financial Aid Scheme (NSFAS) board says it is vindicated by the Labour Court’s decision on the termination of former NSFAS CEO Andile Nongogo’s contract of employment following his irregular involvement in the appointment of the direct payment service providers.

On Monday the court declared Nongogo’s termination as lawful and valid, dismissing his bid for his reinstatement.

The NSFAS board welcomed the decision by the Court to dismiss with costs the application by Nongogo to strike out certain paragraphs as contained in the Werksman Attorney’s report, which implicated him in irregular conduct in relation to the appointment of direct payment service providers.

In August, Nongogo was placed on special leave after an uproar over the scheme’s direct payment contract.

The NSFAS board viewed the Werksmans Attorneys report as a necessary and important measure to “propel NSFAS to a much more elevated level of consciousness to fight corruption and the capture of NSFAS”.

It said the report also served as a measure for NSFAS to further strengthen its own internal supply chain management systems and controls.

Following the judgment, NSFAS noted that it would vigorously continue with its legal process towards the termination of contracts of direct payment service providers.

“The termination of the direct payment service providers will be handled with due care [so as] not to disrupt the disbursement of the allowances to students in the 2024 academic year,” said the NSFAS board.