The SIU welcomed the ruling against Ezaga Holdings, whose application to block a prior ruling against them for mismanaging bursary accounts was blocked
The Special Investigating Unit (SIU) has praised a recent Western Cape High Court decision that dismissed an application by Ezaga Holdings, which sought to block the implementation of the Werksmans Attorneys report.
Ezaga Holdings was one of the companies contracted to disburse funds to National Student Financial Aid Scheme (NSFAS) beneficiaries. Earlier this month, NSFAS administrator Freeman Nomvalo terminated the contracts of Ezaga Holdings and three other service providers, following recommendations from the Werksmans Attorneys report.
The other affected service providers—Coinvest Africa, Norraco Corporation, and Tenet Technologies—were reportedly appointed irregularly. The High Court ruled on June 12 that there was no urgency to Ezaga Holdings’ application, which sought to challenge the termination of their contract.
Judge Thandazwa Ndita ordered Ezaga Holdings to pay the legal costs of NSFAS and the SIU, including those of two counsels. In court documents, Ezaga Holdings’ COO, Ismail Ally, argued that NSFAS had unlawfully terminated their Service Level Agreement (SLA). Ally claimed that only the courts had the authority to invalidate the agreement.
However, the court did not accept Ezaga Holdings’ claim. The ruling stated: “Having read the papers filed on record, and having heard the argument from the parties’ respective counsel, it is hereby ordered that the matter is struck off the record due to lack of urgency. The applicant is ordered to pay the first respondent’s costs, including two counsel.”
The SIU and NSFAS issued a joint statement welcoming the judgment, which they said would allow the implementation of the Werksmans Attorneys report to proceed. “The SIU and NSFAS welcome the decision of the High Court, as it clears the way for the implementation of the Werksmans Attorneys’ report and the outcomes and consequence management to correct wrongdoing and further tighten the controls within the public procurement process.”
Norraco Corporation, another service provider, was also involved in the matter. They filed a counter-application supporting Ezaga Holdings’ position, but this was also dismissed with costs.
This ruling marks a significant step towards ensuring integrity and accountability within NSFAS's procurement processes.
