NSFAS placed under administration following governance crisis

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.

Manamela said 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.

“NSFAS is one of the most important public institutions in our democratic project. It exists to ensure that young people from poor and working-class backgrounds are able to access higher education and training. For many families, NSFAS is not an abstract institution — it is the difference between exclusion and opportunity, between hope and despair,” Manamela said.

The Minister outlined a series of events that led to the intervention, including concerns about the legality of the NSFAS Board’s constitution, which prompted the department to approach the courts through self-review proceedings.

“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,” he said.

The situation worsened with multiple Board resignations, including that of the chairperson, and ongoing disputes related to governance processes and executive appointments.

Manamela said attempts to stabilise the Board through interim appointments and potential vacancy fillings were deemed insufficient.

He noted that governance instability was compounded by serious institutional challenges, many emerged from NSFAS’s own reports, engagements, governance records and responses to the department.

The serious 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 caused substantially by system deficiencies;

• Delays in ICT modernisation and systems integration;

• Student accommodation failures affecting student dignity and safety; and

• Broader governance and accountability concerns.

Appointment of administrator

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.

He currently serves as Director and Head of the Tshwane School for Business and Society at the Tshwane University of Technology and has held professorial and Senate leadership responsibilities within the university sector.

He has also served in executive and governance 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 stabilise the institution, citing his “experience, independence, leadership capacity and institutional understanding” necessary to stabilise NSFAS during this period.

The Administrator’s mandate will focus on restoring stability, accountability, operational continuity and institutional renewal.

Key priorities include strengthening governance and internal controls, addressing audit and consequence-management weaknesses, accelerating ICT and systems integration reforms, stabilising student funding operations, improving student accommodation oversight, resolving appeals and service-delivery backlogs, and preparing the institution for a return to stable ordinary governance.

Uninterrupted operations

Manamela reassured that NSFAS operations would continue uninterrupted.

“The administration is not intended to disrupt NSFAS operations. Student funding will continue, allowances will continue, appeals processes will continue, [and] universities and TVET colleges will continue engaging NSFAS operationally.

“The purpose of the intervention is precisely to protect continuity and restore confidence,” the Minister said.

Manamela 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.

Government, he said, remains fully committed to ensuring that NSFAS succeeds in fulfilling its mandate to poor and working-class students.

“We will continue engaging institutions, students, Parliament, National Treasury, organised stakeholders and the public as this process unfolds,” he said.