National Student Financial Aid Scheme (NSFAS) board chairperson Ernest Khosa has asked to be placed on a leave of absence.
This follows allegations against him in voice recordings of two meetings that were made public by the Organisation Undoing Tax Abuse (Outa).
"The NSFAS board welcomed the notice and the grounds expressed by the board chairperson to take a leave of absence," NSFAS said in a statement.
It added the board immediately informed Higher Education Minister Blade Nzimande about Khosa's notice.
"The board would like to reiterate 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 said the board had resolved to immediately appoint an independent legal firm to investigate the veracity of the allegations against Khosa.
"The legal firm will be expected to report back to the board within 30 days upon their appointment by NSFAS.
"The NSFAS board will soon announce the independent legal firm that will conduct these investigations.
"The NSFAS board also assures all South Africans that this process will be handled with due diligence and integrity it deserves."
On 4 January, Outa released a report alleging service providers contracted by NSFAS paid millions of rand in kickbacks to Nzimande and Khosa as well as at least R1-million towards an SACP conference.
Outa also released voice recordings of two meetings held in August between Khosa and Thula Ntumba, a Coinvest representative and the husband of one of its directors, Tshegofatso Ntumba.
Outa has been investigating the direct payment contracts awarded to Coinvest Africa (Pty) Ltd and three other companies, Tenet Technology (Pty) Ltd, Ezaga Holdings (Pty) Ltd, and Norraco Corporation (Pty) Ltd, in June 2022.
In the second meeting, Ntumba was recorded as saying:
I gave him a million rands for the communist party. Just imagine. For the conference. When there was nothing. I donated with the very same company that created T-shirts last year together with the bags.
It was unclear who the "him" being referred to was, Outa said.
The organisation, which has called for the resignation of Khosa and Higher Education Minister Blade Nzimande, claimed the R1-million payment to the SACP was made in return for tenders and protection for service providers.
Nzimande, who is the chairperson of the SACP, denied the allegations contained in the Outa report.
On Wednesday, NSFAS said Khosa had taken the board into his confidence concerning the impact of the allegations against NSFAS and its beneficiaries as well as his person and 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 meant for his personal use, that of the minister and the South Africa Communist Party."
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