South Africa's National Student Financial Aid Scheme (NSFAS) has been placed into administration following growing governance, legal and operational concerns, Higher Education and Training Minister Buti Manamela announced on Monday.
The intervention comes after the minister described a prolonged period of instability that has threatened the credibility of the country's largest student-funding institution.
“We took this step because the government cannot knowingly ignore potential legal irregularities in the formation of a statutory body that is entrusted with billions of rands of public money and the future of millions of students,” he said.
NSFAS, which supports millions of poor and working-class students, has faced growing governance problems over the past year, including questions over the legality of its board's constitution, prompting the department to launch court proceedings.
The situation worsened following the resignation of several board members, including the chairman, and disputes over governance processes and executive appointments.
Manamela said the decision to dissolve the board was taken following a comprehensive assessment of NSFAS's internal reports and engagements, which revealed serious institutional weaknesses.
These include disclaimer audit results for 2024/25, material irregularities flagged by the Auditor General, poor results management, data-integrity failures, unresolved student appeals linked to system deficiencies, delays in ICT modernization and ongoing problems with student accommodation inspections.
Hlengani Mathebula has been appointed Administrator with a mandate to stabilize governance, strengthen internal controls, accelerate ICT reforms, resolve operational backlogs and prepare NSFAS for a return to normal governance.
Mathebula has held senior roles in the South African Reserve Bank, the South African Revenue Service and the university sector.
Manmela stressed that NSFAS operations – including student funding, allowance payments and appeals – will continue uninterrupted.
He said the intervention was aimed at protecting continuity and restoring confidence in the central institution to increase access to higher education.
JN/APA