Chair of the board of the National Student Financial Aid Scheme (NSFAS) Ernest Khosa has taken leave of absence to allow an inquiry into corruption accusations made by Operation Undoing Tax Abuse (OUTA) against him.

OUTA is accusing both Khosa and Minister of Higher Education and Training, Blade Nzimande, of defrauding NSFAS through kickbacks from service providers. In explosive three-hour recording released by the organisation, Khoza had two meetings after NSFAS board was dissolved in August last year. In the meetings, it was revealed that a service provider reportedly paid R1 million to Nzimande. In the recording, Khosa said the OUTA report was not the problem but rather the conspiracy within the ruling party. He mentioned that the Deputy Minister Buti Manamela was conspiring to get rid of him and Nzimande. Khosa has since claimed that he has received death threats since the recordings were shared.

According to a statement released by the board last night, it said that NSFAS board met in its ordinary meeting to discuss the NSFAS state of readiness for the beginning of the 2024 academic year. "The NSFAS Board Chairperson Mr Enerst Khosa voluntarily requested the board to consider his notice to be placed on leave of absence to enable the board to deal with all the allegations against him as contained in the recordings distributed by OUTA. "The board chairperson took the board of NSFAS into confidence regard the impact of these allegations against NSFAS, NSFAS beneficiaries, family... These include threats to his life and that of his family. The NSFAS Chairperson assured the board that he has not received any financial gratification for his personal use, that of the Minister of Higher Education, Science and Innovation and Communist Party," the statement reads. The NSFAS board said that it welcomed the notice and the grounds expressed by Khosa to take leave of absence. "The board instantly informed Professor (Dr) Blade Nzima on the notice by the NSFAS chair. Nzimande has the fiduciary responsibility to appoint the acting board chairperson. The board would like to retaliate that Mr Khosa's leave of absence should not be interpreted as admission of guilt, however a responsible and conscious decision to advance good corporate governance, transparency and accountability.

NSFAS also said in a statement that it has resolved to immediately appoint an independent legal firm to look into the allegations against Khosa. The legal firm which is still to be announced will be expected to report back to the board within 30 days upon their appointment by the scheme. "The NSFAS Board also assures all South Africans that this process will be handled with due diligence and integrity it deserves. Furthermore, the NSFAS Board would like to assure South Africans that the board of NSFAS will continue to work with all stakeholders within the Post School Education and Training sector to ensure that there is a seamless and successful beginning of the 2024 academic year," the statement reads.