The National Students Financial Aid Scheme (NSFAS) board has placed the scheme's Chief Executive Officer Andile Nongogo on suspension, pending investigation into corruption allegations levelled against him.

In a statement to the media, board chair Ernest Khosa said that in the past few weeks, there have been several allegations against Nongogo relating to his work with the Services Seta and how this may relate to unacceptable conduct in awarding bids at NSFAS. "Whilst the board recognises that the main allegations stem from activities in another organisation, it views them in a very serious light. NSFAS runs close to an R50 billion budget which services students from poor and working-class backgrounds. This is no small task as it has an impact on skill development and consequently the economic development of our nation," the statement reads.

The board said that it believes that in executing this responsibility, public trust must be of paramount importance. "In the interest of the image of the NSFAS, the board has resolved to investigate the allegations with a particular focus on the Direct Payment Project. During the course of the investigation Nongaga will be on leave of absence," the statement read. Khosa added that the board wished to reiterate that the investigation is no pronouncement of guilt against Nongongo. "This is an objective effort to determine the veracity of the allegations," Khosa said. The statement further said that the Chief Financial Officer (CFO) Masile Ramorwesi will act as the CEO until further notice.