South Africa’s National Student Financial Aid Scheme (NSFAS) has been placed under administration following mounting governance, legal and operational concerns, Higher Education and Training Minister Buti Manamela said.
The intervention comes after what the minister described as a prolonged period of instability that threatened the credibility of the country’s largest student‑funding institution.
“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.
NSFAS, which supports millions of poor and working‑class students, has faced escalating governance problems over the past year, including questions over the legality of its board’s constitution, prompting the department to initiate court proceedings.
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The situation deteriorated further after multiple board resignations, including that of the chairperson, and disputes over governance processes and executive appointments.
Manamela said” the decision to dissolve the board followed extensive assessments of NSFAS’s internal reports and engagements, which revealed serious institutional weaknesses”.
These included a disclaimer audit outcome for 2024/25, material irregularities flagged by the Auditor‑General, poor consequence management, data‑integrity failures, unresolved student appeals linked to system deficiencies, delays in ICT modernisation, and ongoing problems with student accommodation oversight.
Hlengani Mathebula has been appointed administrator, with a mandate to stabilise governance, strengthen internal controls, accelerate ICT reforms, resolve operational backlogs and prepare NSFAS for a return to normal governance.
Mathebula has held senior roles at the South African Reserve Bank, the South African Revenue Service and in the university sector.
Manamela stressed that NSFAS operations – including student funding, allowance payments and appeals – would continue uninterrupted.
He said the intervention was intended to protect continuity and restore confidence in an institution central to expanding access to higher education.
AP
