The SA Union of Students (SAUS) is not backing down on its demand for the removal of Higher Education Minister Blade Nzimande. 

SAUS spokesperson Asive Dlanjwa said the union conveyed this to Nzimande during a meeting on Tuesday.

Its demand follows a damning report by the Organisation Undoing Tax Abuse (Outa), which alleged service providers contracted by the National Student Financial Aid Scheme (NSFAS) paid millions of rand in kickbacks to Nzimande and NSFAS board chairperson Ernest Khosa.

Nzimande denied the allegations, saying he did not receive any personal kickbacks from any of the service providers or any of the entities falling under his department.

At a briefing on Monday, he labelled the Outa report as "lies" that emanated from a malicious fightback campaign by corrupt elements, adding: "My conscience is clear, and I have nothing to hide or fear."

Nzimande said he had voluntarily decided to subject himself to the ethics bodies of the ANC and SACP.

He spent Tuesday in a series of meetings with students and Universities South Africa (USAf) to discuss a new student funding model for this year.

At the meeting with SAUS, Nzimande maintained his innocence and insisted he would continue in his portfolio.

On Thursday, 4 January, Outa released voice recordings of two meetings between Khosa and a representative of a service provider, Thula Ntumba, who is the husband of Tshegofatso Ntumba, one of the directors of Coinvest Africa.

Coinvest Africa, Tenet Technology (Pty) Ltd, Ezaga Holdings (Pty) Ltd, and Norraco Corporation (Pty) Ltd were awarded contracts by NSFAS in June 2022 to pay allowances to beneficiaries.

Outa, which has been investigating the direct payment contracts, alleged the kickbacks were paid in return for tenders and protection for service providers.

Dlanjwa said SAUS demanded at its meeting with Nzimande on Tuesday that Khosa be removed from the board.

"The minister maintained his position that he has done nothing wrong and that he reserves the right to take legal action against Outa for what he believes is a nefarious act.

"He did mention he's not opposed to criticism and believes he must not be accused of things that he has not done."

Dlanjwa said, even before the Outa report, the union had called on President Cyril Ramaphosa to remove Nzimande.

"Almost 100 000 students went to write their end-of-year exams without receiving their allowances. Some did not even have accommodation or transport."

He also confirmed Nzimande told them during the meeting a programme would be implemented "to assist with the funding for the missing middle".

The "missing middle" refers to students whose annual combined family income is between R350 000 and R600 000.

According to a study conducted by NSFAS in 2019, about 100 000 undergraduate students at the time fell into the "missing middle" category, which included the children of teachers, nurses, prison warders and police officers.

Currently, only students whose combined family income is less than R350 000 qualify for a bursary from NSFAS.

Nzimande said at Monday's briefing he would be meeting with the NSFAS board on Wednesday to receive a progress report on, among other things, the phased implementation of the comprehensive funding model, "particularly the funding of the missing middle through the NSFAS loan scheme".

While the Department of Higher Education and Training declined to comment on these developments, Dlanjwa said the meeting discussed it would be a multi-year project and some of this year's "missing middle" students would become the first cohort to benefit from the programme.

"The minister will announce further details. One of the things we have been complaining about for the past few years is funding for the missing middle. We are absolutely delighted that funding will now be made available."

News24 understands the funding will target those "missing middle" students who enrol for qualifications listed as critical skills.

While National Treasury has indicated to Nzimande's department its budget was facing a 7.2% "preliminary" cut, Dlanjwa said the union's view was the money for "missing middle" students should come from the state's coffers.

NSFAS budgeted R47-billion for 1.1-million students in the current financial year.

Also on Tuesday, Nzimande met with USAf, an umbrella body representative of the 26 public universities.

Asked for comment on the funding for missing middle students, USAf CEO Phethiwe Matutu referred queries to the department.

"I think they will give you a much more substantive report of what was discussed and what the outcomes were," she said.

Department spokesperson Veli Mbele said the plan was for Nzimande to give an update on the funding for the missing middle during a media briefing on Sunday.

"We are therefore not at liberty to share those details at this stage," he added.

Meanwhile, one of the four service providers, eZaga Holdings, said in a statement it rejected any allegation of its involvement in discussions, reports or recordings related to the Outa report or Nzimande's comments.

"eZaga has never engaged in any of these discussions with any stakeholders, including Outa. However, media reports are alleging that 'all' service providers have done so."

According to the statement, eZaga Holdings, its directors, employees, and board categorically denied any involvement in corrupt practices with the NSFAS board or the minister.

"Furthermore, no discussions were ever held in a personal capacity by anyone associated with our company."