Question NW3742 to the Minister of Higher Education, Science and Innovation
13 December 2023 - NW3742
Shikwambana, Mr M to ask the Minister of Higher Education, Science and Innovation
What (a) are the full relevant details regarding the revelations of a massive corruption and procurement heist which led to the expulsion of a certain person (details furnished) and (b) processes were followed in appointing companies that were supposed to disburse allowances to students?
Reply:
Below we outline the sequence of events, related timelines and information on each stage of the procurement process (for the Direct Payments of Allowances to NSFAS Students) that was followed in accordance with the Public Finance Management Act (Act No. 1 of 1999) (PFMA), the National Treasury Instruction Notes and Practice Notes, and the NSFAS supply chain management policy.
An Open Bidding (Competitive) process was followed by NSFAS in sourcing suitable bid proposals from prospective service provider(s) in the financial services and fintech sector to assist NSFAS, for a period of five (5) years (renewable), in the direct disbursement of allowances into the bank accounts of NSFAS funded students/ beneficiaries enrolled for a course of study at public universities and TVET colleges across South Africa.
A summary of the procurement process followed is outlined below:
1. Following the support and approval of the bid specifications by the NSFAS bid specification committee (BSC) the tender was advertised on 25 January 2022 in the National Treasury E-tender portal and the NSFAS website with the closing date of 25 February 2022 on the 90/10 Price and BBB-EE principle.
2. A total of 18 bids were received at the closing date of the tender, all of which were evaluated by the NSFAS bid evaluation committee (BEC) against the tender requirements. The BEC convened on seven (7) occasions. An independent expert was appointed to assist and guide during the evaluation process, however noting that this independent expert did not have any voting rights, and accordingly did not evaluate and score any of the 18 proposals received.
3. Of the 18 bid proposals received, a total of nine (9) bids were disqualified for not achieving the mandatory requirements of the tender.
4. The remaining nine (9) bids were subjected to the technical and functional evaluation criteria, of which the outcome was that all nine (9) achieving the minimum score of 70% out of 100%.
5. The nine (9) bids were all invited to present their proposed solution to the BEC on 11 May 2022 and 13 May 2022.
6. A total of four (4) bidders achieved the minimum score for the presentation criteria and passed all the tender requirements, and thus progressed to be evaluated for Price and BBB-EE.
7. On 08 June 2022, the BAC adjudicated on BEC recommendation report and recommended that the CEO support (for onward approval by the NSFAS Board) the tender for the Direct payments of allowances to NSFAS students (SCMN022-2021) for a period of five (5) years, renewable, award to the following four (4) bidders:
- Coinvest Africa (Pty) Ltd
- Tenet Technology (Pty) Ltd
- Ezaga Holdings (Pty) Ltd
- Norraco Corporation (Pty) Ltd
8. On 13 June 2022, the NSFAS Board approved the tender for the Direct payments of allowances to NSFAS students (SCMN022-2021) for a period of five (5) years, renewable be awarded to the following four (4) bidders:
- Coinvest Africa (Pty) Ltd
- Tenet Technology (Pty) Ltd
- Ezaga Holdings (Pty) Ltd
- Narraco Corporations (Pty) Ltd
9. On 15 June 2022, all four (4) bidders were issued with letters of award and negotiations on price standardization, etc and signing of Service Level Agreements followed thereafter.