The gloves have come off in the battle for the control of the National Student Financial Aid Scheme (Nsfas), with the board moving to interdict Higher Education and Training Minister Buti Manamela’s decision to place the entity under administration.
The remaining seven board members want to stop the appointment of Prof Hlengani Mathebula as administrator and suspend the implementation of the decision.
Board challenges legality of intervention
The board contends the minister’s intervention was procedurally flawed and undermined its authority.
Board member advocate Tlou Ramashia has been tasked with representing the board and depose affidavits in the matter.
The board seeks an urgent high court relief to keep the status quo, pending a full judicial review.
“The board considers it necessary and appropriate, in the interests of Nsfas, the board, good governance, legality, procedural fairness and the preservation of the status quo, to authorise urgent legal proceedings to interdict, restrain and/or suspend the contemplated or intended appointment of an administrator and/or the implementation of any such appointment,” the board said in a statement.
Members argued that placing Nsfas under administration was neither justified nor lawful and claimed Manamela failed to adequately consult the board before taking the decision, as required by the Nsfas Act.
According to a board member, who asked not to be named, the minister failed to fulfil his statutory duty to appoint a fully functional board.
Governance gaps and board vacancies raised
They said according to the act, Nsfas should have 18 board members, including 13 appointed by the minister.
However, they said, vacancies remained unfilled following resignations, questioning why Manamela “refused without reason” to appoint at least six additional members to stabilise governance.
Central to the dispute are claims of Manamela’s alleged interference in the appointment of a permanent CEO.
According to the board, the process was disrupted when an allegedly unqualified candidate was introduced into the recruitment pipeline under controversial circumstances.
Board committees reportedly rejected the move based on established criteria, prompting alleged intervention from the minister.
A senior board member claims Manamela personally contacted board members and instructed them to halt the CEO appointment process, only to later threaten administrative intervention.
This is alleged to have triggered resignations, including that of interim chair Mugwena Maluleke and committee chair Karabo Mohale.
Political tensions spill into parliament
Another board member said not only did they learn of their sacking in the media; they were removed just a day ahead of their appearance before parliament’s portfolio committee on higher education today.
This was to answer questions on the secret meeting Manamela allegedly held with some board members as part of his alleged meddling in the recruitment of the CEO.
“The minister’s motive to push the preferred candidate was so that they could enable systemic looting of the fund,” they said.
Board members had been booked on flights to Cape Town, but these were cancelled on Monday.
“The minister did not want us in parliament as he was afraid of what we might reveal to parliament about his conduct,” they said.
The board member also said Manamela was blaming them for the wrongs of their predecessors as the R2 billion payments scandal occurred between 2016 to 2021, before the current board came into office just over a year ago.
Manamela has denied meddling in the affairs of the board.
