Higher Education and Training Minister Buti Manamela has placed the embattled National Student Financial Aid Scheme (Nsfas) under administration.
Manamela announced his decision, which he says was “not taken lightly”, during a media briefing on Monday, 4 May.
Decision follows prolonged governance concerns
The decision, Manamela said, was arrived at after a long process of engagement, legal assessment, governance intervention, and consideration of alternatives.
“When I assumed office as minister of higher education and training, concerns already existed regarding the constitution of the Nsfas board. Following legal assessment and advice, the department approached the courts through self-review proceedings concerning the processes through which the board had been constituted,” Manamela said.
“We took this step because government cannot knowingly ignore potential legal irregularities in the constitution of a statutory body entrusted with billions of rands in public funds and the futures of millions of students.”
Board instability and resignations deepen crisis
He said during the process, the scheme’s board experienced a series of resignations, including that of then chairperson Dr Karen Stander and other members of the board.
Interim chairperson Dr Mugwena Maluleke and a deputy chairperson were appointed, although they also eventually stepped down.
“Subsequently, requests were made for the filling of vacancies on the board. However, having already approached the courts regarding the legality of the court’s constitution, it would have been contradictory and potentially irrational for government to proceed as though that issue did not exist,” the minister said.
“At the same time, broader institutional concerns at Nsfas continued to deepen.”
Irregularities and system failures highlighted
These concerns, Manamela said, did not emerge from rumour or speculation but from Nsfas’ own reports, engagements, governance records, and also responses to the department.
Issues the scheme faced included material irregularities identified by the auditor general, weaknesses in consequence management, serious data integrity concerns, unresolved student appeals caused substantially by system efficiency, delays in ICT modernisation and system integration, student accommodation failures affecting student dignity and safety, and also broader governance and accountability concerns.
He said the department also became increasingly concerned about the pace and adequacy of remedial interventions within Nsfas.
During this time, governance instability within the board itself intensified.
“The real question became this: was Nsfas as an institution functioning effectively, sustainably and credibly in the interest of students and the country? That is the question government had to answer,” Manamela said.
After engaging the remaining board members and looking at alternative options, Manamela appointed Professor Hlengani Mathebula as the administrator.
Administrator appointed to restore stability
The minister said Mathebula brings extensive governance, financial management, regulatory and institutional leadership experience accumulated over more than three decades across the public and private sector.
His experience includes senior leadership roles in the financial services sector, corporate banking, central banking, public governance and higher education leadership.
‘He combines governance and financial oversight experience with academic and institutional leadership within the higher education sector.”
‘Allowances will continue’
Manamela also emphasised that the administration was not intended to disrupt Nsfas operations.
He said student funding would continue.
“Let me state this clearly… allowances will continue, appeals which are still outstanding will also continue,” Manamela said.
“This intervention is not about personalities; it’s not about factions. It is not about preferred individuals or internal contestation. It’s about protecting students, stabilising a critical public institution, restoring accountability and ensuring that Nsfas performs its mandate effectively and lawfully.”
