Higher Education and Training Minister Buti Manamela has officially placed the National Student Financial Aid Scheme (NSFAS) under administration, citing ongoing governance instability and operational challenges within the institution.
The announcement was made during a media briefing on Monday, where the Minister outlined a series of serious concerns that have affected NSFAS’s stability, credibility, and ability to effectively serve students.
Unlike a regular business, being placed under administration does not mean that the organisation is in financial difficulty. It is a response by the Minister because he does not have faith in the Board of the organisation to run it successfully, and manage the staff and management.
The Administrator replaces the Board and Chairperson, and reports directly to the Minister. This is the third time NSFAS has been placed under administration. Previous occurrences happened in 2018, and 2024.
The Administrator being appointed shouldn't have a negative affect on students. The work of NSFAS should continue as usual with payments to students and accommodation providers being made according to schedule.
Why NSFAS Was Placed Under Administration
According to Manamela, the decision was taken in terms of sections 17A to 17D of the NSFAS Act, 1999, following “careful consideration of the legal, governance, financial and operational circumstances” facing the organisation.
“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 explained that concerns around the legality of the NSFAS Board’s constitution prompted the department to initiate legal action 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.
Governance and Operational Failures
The situation at NSFAS worsened due to multiple Board resignations, including that of the chairperson, as well as ongoing disputes related to governance processes and executive appointments.
Attempts to stabilise the Board through interim measures were deemed insufficient, as deeper institutional challenges continued to emerge.
Key issues identified include:
- A disclaimer audit outcome for the 2024/25 financial year
- Material irregularities flagged by the Auditor-General
- Weak consequence management processes
- Serious data integrity concerns
- Delays in resolving student appeals due to system failures
- Slow progress in ICT modernisation and systems integration
- Student accommodation challenges affecting safety and dignity
- Broader governance and accountability weaknesses
Administrator Appointed to Lead NSFAS
Manamela confirmed the appointment of Hlengani Mathebula as the NSFAS Administrator. Mathebula brings more than 30 years of experience across both the public and private sectors, including expertise in governance, financial management, 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 previously held senior roles at institutions such as the South African Reserve Bank and the South African Revenue Service.
The Minister expressed confidence in his appointment, citing his “experience, independence, leadership capacity and institutional understanding” as key to restoring stability at NSFAS.
Key Priorities During Administration
The Administrator’s mandate will focus on stabilising the organisation and improving service delivery. Priority areas include:
- Strengthening governance and internal controls
- Addressing audit findings and consequence management gaps
- Accelerating ICT system improvements and integration
- Stabilising student funding processes
- Improving oversight of student accommodation
- Resolving appeals and clearing backlogs
- Preparing NSFAS for a return to normal governance
Student Funding to Continue
Manamela reassured students and institutions that NSFAS operations will continue without disruption during the administration period.
“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.
Government Remains Committed
The Minister acknowledged the efforts of both former and remaining NSFAS Board members, noting the complexity of the challenges faced by the institution.
He reaffirmed government’s commitment to ensuring that NSFAS continues to fulfil its critical role in supporting access to higher education for 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.
The move to place NSFAS under administration is aimed at restoring trust, strengthening governance, and ensuring the long-term sustainability of student funding in South Africa.
Additional reporting from SANews.gov.za
