Pretoria: Higher Education and Training Minister Buti Manamela has placed the National Student Financial Aid Scheme (NSFAS) under administration due to governance instability within the institution. The decision, announced during a media briefing on Monday, follows what the Minister described as a prolonged period of governance challenges, legal concerns, and operational weaknesses that threatened the stability and credibility of NSFAS.
According to South African Government News Agency, the move was taken in terms of sections 17A to 17D of the NSFAS Act, 1999, after 'careful consideration of the legal, governance, financial and operational circumstances' affecting the institution. Minister Manamela emphasized the crucial role NSFAS plays in enabling access to higher education for young people from poor and working-class backgrounds, highlighting the institution's importance in offering hope and opportunity to many families.
The Minister outlined a series of events that led to the intervention, including concerns about the legality of the NSFAS Board's constitution, prompting the department to approach the courts through self-review proceedings. The situation was further aggravated by multiple Board resignations, including that of the chairperson, and ongoing disputes related to governance processes and executive appointments.
Manamela stated that attempts to stabilize the Board through interim appointments and potential vacancy fillings were deemed insufficient. Governance instability was compounded by serious institutional challenges identified in NSFAS's own reports, engagements, governance records, and responses to the department. Key concerns included a disclaimer audit outcome for the 2024/25 financial year, material irregularities identified by the Auditor-General, weaknesses in consequence management, serious data integrity concerns, unresolved student appeals, delays in ICT modernisation, student accommodation failures, and broader governance and accountability issues.
Following consultations and consideration of alternatives, Manamela announced the appointment of Hlengani Mathebula as NSFAS Administrator. Mathebula brings over three decades of experience across public and private sectors, including roles in governance, financial management, regulatory and institutional leadership. Currently serving as Director and Head of the Tshwane School for Business and Society at the Tshwane University of Technology, Mathebula has also held positions at the South African Reserve Bank, the South African Revenue Service, and on the boards of several public and private entities.
Manamela expressed confidence in Mathebula's ability to stabilize the institution, citing his experience, independence, leadership capacity, and institutional understanding necessary during this period. The Administrator's mandate will focus on restoring stability, accountability, operational continuity, and institutional renewal, with key priorities including strengthening governance and internal controls, addressing audit and consequence-management weaknesses, accelerating ICT and systems integration reforms, stabilizing student funding operations, improving student accommodation oversight, resolving appeals and service-delivery backlogs, and preparing the institution for a return to stable ordinary governance.
Manamela reassured that NSFAS operations would continue uninterrupted, emphasizing that the administration is not intended to disrupt operations. Student funding, allowances, appeals processes, and engagements with universities and TVET colleges will continue as usual. The purpose of the intervention is to protect continuity and restore confidence in the institution.
The Minister acknowledged the contributions of both the former and remaining members of the NSFAS Board for their service during a difficult and complex period for the institution. The government remains fully committed to ensuring that NSFAS succeeds in fulfilling its mandate to poor and working-class students, with ongoing engagements with institutions, students, Parliament, National Treasury, organized stakeholders, and the public as the process unfolds.
