Minister Manamela places NSFAS under administration amid governance crisis

Buti Manamela

Pretoria – Higher Education and Training Minister Buti Manamela has placed the National Student Financial Aid Scheme (NSFAS) under administration, citing deepening governance instability, legal concerns and operational failures within the institution.

The decision, announced during a media briefing on Monday, follows what Manamela described as a prolonged period of challenges that have threatened the stability and credibility of the student funding scheme.

The intervention was effected 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 entity.

“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,” Manamela said.

“For many families, NSFAS is not an abstract institution — it is the difference between exclusion and opportunity, between hope and despair.”

The Minister said the department was compelled to act following concerns about the legality of the NSFAS Board’s constitution, which prompted government 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 was further exacerbated by multiple board resignations, including that of the chairperson, as well as ongoing disputes over governance processes and executive appointments. Efforts to stabilise the board through interim measures were deemed insufficient.

Manamela said the governance instability was compounded by serious institutional weaknesses, many of which emerged from NSFAS’s own reports and engagements with the department.

These include a disclaimer audit outcome for the 2024/25 financial year, material irregularities flagged by the Auditor-General, weaknesses in consequence management, data integrity concerns, unresolved student appeals linked to system deficiencies, and delays in ICT modernisation.

Additional concerns relate to student accommodation failures affecting dignity and safety, as well as broader governance and accountability shortcomings.

Administrator appointed

Following consultations, Manamela announced the appointment of Hlengani Mathebula as NSFAS Administrator.

Mathebula, who currently serves as Director and Head of the Tshwane School for Business and Society at the Tshwane University of Technology, brings more than three decades of experience in governance, financial management and institutional leadership.

His career includes roles at the South African Reserve Bank and the South African Revenue Service, as well as leadership positions in academia and on various boards.

Manamela expressed confidence in Mathebula’s ability to steer the institution through the crisis, citing his “experience, independence, leadership capacity and institutional understanding”.

The administrator’s mandate will focus on restoring stability, strengthening governance and internal controls, addressing audit findings, accelerating ICT reforms, improving student accommodation oversight, and resolving appeals and service-delivery backlogs.

Operations to continue

Manamela stressed that the move is not intended to disrupt NSFAS operations, assuring students and institutions that funding processes will continue.

“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,” he said.

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

He added that government remains committed to ensuring NSFAS fulfils its mandate to support poor and working-class students, and will continue engaging stakeholders including institutions, Parliament, National Treasury and the public as the process unfolds.

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