Manamela orders self-review on NSFAS

The Minister of Higher Education, Science and Innovation, Buti Manamela, will approach the High Court to seek a self-review of the process used to appoint the National Student Financial Aid Scheme (NSFAS) Board earlier this year.

The minister announced the decision on Friday, saying the move follows legal advice received by the department regarding procedural shortcomings identified in the appointment process.

According to a statement issued by the department on Friday, the self-review application is intended to regularise the process and ensure that it complies fully with the law. The ministry said the decision is a precautionary measure to safeguard governance and restore institutional confidence in the NSFAS board and operations.

“This decision is about taking collective responsibility for ensuring that the governance of NSFAS is not only effective but legally compliant, stable and resilient. It is guided not only by this principle but by the overriding concern for the stability of NSFAS as it continues to deliver student funding,” said Manamela.

Nanamela cconfirmed that the board will remain in place while the review is underway and that the day-to-day operations of NSFAS will not be disrupted. The department said the funding of students and other services will continue as normal until the court makes a determination.

The ministry also confirmed that Dr Karen Stander has resigned as the chairperson of the NSFAS board. Her resignation comes amid ongoing public discussion about internal tensions at the financial aid agency. Manamela said he has accepted her resignation and will appoint a new chairperson on Monday, 10 November 2025, to ensure continuity and stability.

In the same statement, the minister conveyed best wishes to the matric class of 2025 and reminded students that applications for NSFAS funding for the 2026 academic year will close on 15 November 2025.

The announcement comes at a time when NSFAS has faced growing scrutiny over its management, student payment systems, and board governance. The institution has been under pressure from student organisations and unions to improve accountability and efficiency.

The South African Students Congress (SASCO) earlier this week said the resignation of Dr Stander reflected a broader “crisis of legitimacy” within the board rather than an isolated case of workplace difficulty.

In a detailed statement, SASCO said it noted the resignation of Dr Stander, who reportedly cited a “toxic workplace,” racism, and threats to her family’s safety. The organisation said that while it does not condone any form of bullying or threats, it believes that these claims must not overshadow the deeper governance issues at NSFAS.

SASCO called for the South African Police Service to investigate any alleged threats made against Dr Stander and urged her to disclose details of any racism she may have experienced. However, the student body criticised what it described as selective outrage from sections of the media, saying that the real “toxicity” existed in the daily experiences of students who rely on NSFAS.

“For students, toxicity is not a hostile boardroom meeting. It is the hunger caused by delayed allowances, the homelessness triggered by unaccredited accommodation, and the psychological violence of financial exclusion,” SASCO said.

The organisation argued that the board had been unlawful from its inception because it lacked proper student representation as required by the NSFAS Act. It said this lack of representation had contributed to ongoing administrative failures and policy decisions that harmed working-class and poor students.

SASCO also criticised the board’s discussions about returning accommodation accreditation powers to universities. It described this as a “betrayal of the working-class student” that could lead to renewed corruption and unsafe living conditions. The student group said the board’s failure to include student voices in key decisions had eroded trust and accountability.

“Those who choose to serve on the board of a critical state organ like NSFAS must understand the constituency they serve. It is not a corporate boardroom detached from reality; it is a lifeline for millions,” the statement read.

SASCO praised Manamela’s decision to launch a review of the board’s appointment process and called for the immediate dissolution of the current board. The group demanded that a new board be constituted in full compliance with the NSFAS Act and that it include mandated student representatives.

The organisation also called for the suspension of the plan to return accommodation accreditation to universities, saying a centralised and transparent system that prioritises student interests must be implemented instead.

SASCO said the resignation of the chairperson did not absolve the board of responsibility for its failures. “The resignation of a chairperson who presided over an unlawful board does not absolve it of its collective failures,” it said.

The statement concluded by reiterating SASCO’s commitment to advocating for a student-centred NSFAS and a higher education system that guarantees free and quality education.

Minister Manamela’s court application is expected to clarify the legality of the NSFAS board’s appointment and guide future governance processes at the agency. Until then, NSFAS operations will continue as normal, and students have been assured that funding and allowances will not be affected.