The National Student Financial Aid Scheme (NSFAS) has been placed under administration, with the Government taking steps to address deep-rooted governance and operational failures.
Higher Education and Training Minister Buti Manamela announced the decision on Monday, May 4, saying it followed a long period of instability that threatened the institution's credibility.
NSFAS plays a central role in funding students from poor and working-class backgrounds, making its sustainability vital to the higher education system.
There are growing problems in NSFAS behind this decision
Manmela said The intervention was undertaken under the NSFAS Act after a review of legal, financial and governance concerns.
Among the key issues was uncertainty about the validity of the NSFAS Board's constitution, which prompted the department to approach the courts. The situation has been further complicated by several resignations, including that of the board chairperson, and ongoing disputes over governance processes.
Efforts to stabilize the Board through interim measures were ultimately not sufficient.
At the same time, a series of internal challenges And the worry increased. These included disclaimer audit results for the 2024/25 financial year, material irregularities flagged by the Auditor General, and weaknesses in results management.
Operational problems also came into focus, including data integrity issues, delays in IT system upgrades, unresolved student appealand ongoing concerns about student housing.
Administrator appointed to take charge
As part of the intervention, Manamela appointed Hlengani Mathebula as NSFAS Administrator.
Mathebula has over 30 years of experience in the public and private sectors. His background includes governance, finance and institutional leadership as well as senior positions at the South African Reserve Bank and the South African Revenue Service.
The minister said Mathebula's role will focus on restoring stability and accountability, addressing both governance failures and service delivery issues.
Key priorities during the administration period include strengthening internal controls, resolving audit findings, improving funding operations, and clearing the backlog in student appeals.
There will also be a focus on fixing IT systems, improving housing oversight and rebuilding trust in the institution.
No disruption to student funding
Manmela stressed that the move is not intended to disrupt NSFAS services.
Student funding, allowances and appeals processes will continue, and universities and TVET colleges are expected to maintain their normal association with the scheme.
“The aim of the intervention is obviously to protect continuity and restore confidence,” he said.