Former Minister of Higher Education Nobuhle Nkabane has strongly refuted allegations made by the Graduate Institute of Financial Sciences (GIFS) that she approved a R200 million settlement from the Insurance Sector Education and Training Authority (INSETA).
Responding to questions from the Daily News, Nkabane said she had no knowledge of any such agreement during her tenure and was never presented with documents related to the alleged settlement.
“Please don’t inquire about anything regarding the DHET in future; you must communicate directly with the executive authority, Minister Manamela,” she said, referring the matter to her successor, Minister Bhuti Manamela.
Despite her denial, Selina Maharaj, GIFS’s risk and compliance manager, maintains that settlement talks did occur with Nkabane before her resignation. According to Maharaj, negotiations were “at an advanced stage” when Nkabane left office.
“We confirm that we were engaged in settlement negotiations with the former Minister of Higher Education, Minister Nkabane,” Maharaj said, adding that the case is now before the courts and involves both INSETA and Minister Manamela.
The dispute originates from GIFS’s R200 million damages claim after INSETA revoked its accreditation in 2022. GIFS insists that talks with Nkabane were nearly finalized before Minister Manamela stopped the process and declined to sign the proposed agreement.
INSETA’s Position and Legal Setbacks
INSETA has denied the allegations, stating that GIFS’s accreditation was revoked due to findings of “fraudulent conduct.” The authority maintains that its decision was lawful and necessary following an internal investigation.
GIFS’s attempt to overturn the de-accreditation through the courts has faced repeated setbacks. Although Judge Yacoob of the Gauteng South High Court initially granted a temporary interdict, INSETA’s subsequent appeal kept the de-accreditation in effect. Several urgent applications by GIFS were later dismissed with costs by Acting Judges Wepener, Van Niekerk, and Marais, who ruled that the institute’s claims lacked merit.
Origins of the Controversy
The legal saga dates back to April 2021, when former GIFS employee Uthika Maharaj accused the institute of fraudulent practices linked to Covid-19 sanitisation projects and damaged learner portfolios. Her claims were supported by Francinette Zagorski, the institute’s former CFO, who documented her refusal to sign what she described as a false affidavit about the alleged losses.
These whistleblower accounts prompted an independent investigation by Masegare and Associates Incorporated, which uncovered major irregularities. The firm’s report concluded that GIFS misled INSETA regarding the state of learner portfolios and failed to meet required storage and compliance standards.
The matter remains before the courts as both GIFS and INSETA continue to battle over the damages claim and the legitimacy of the accreditation withdrawal.
