GCIS, Pretoria – Higher Education and Training Minister Mr Buti Manamela has placed the National Student Financial Aid Scheme (NSFAS) under administration, appointing Professor Hlengani Mathebula as Administrator in a move aimed at restoring governance stability, operational effectiveness and public confidence in the institution.
Announcing the decision during a media briefing on Monday, Minister Manamela said the intervention followed extensive legal, governance and financial assessments, and was taken in terms of Sections 17A to 17D of the NSFAS Act of 1999.
“NSFAS is one of the most important public institutions in our democratic project,” Mr 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 stressed that the decision was not taken lightly and followed a prolonged period of instability within the organisation, including governance disputes, board resignations and serious operational challenges.
Minister Manamela cited a range of concerns that informed the intervention, including the 2024/25 disclaimer audit outcome, material irregularities identified by the Auditor-General, weaknesses in consequence management, and serious data integrity problems.
He also pointed to unresolved student appeals, largely due to system deficiencies, delays in ICT modernisation, failures in student accommodation affecting student dignity and safety, and broader accountability concerns.
“The real question became this,” he said. “Was NSFAS, as an institution, functioning effectively, sustainably and credibly in the interests of students and the country?”
Following the resignations of the Interim Chairperson and Deputy Chairperson, the governance situation further deteriorated. After considering alternatives, including filling board vacancies, appointing additional interim leadership, issuing further directives and intensifying departmental oversight, the Minister concluded that ordinary governance mechanisms would not adequately stabilise the institution.
“I was not satisfied that continued Board-led governance, in the prevailing circumstances, would provide the level of assurance required to restore institutional stability, protect students and safeguard public resources,” the Minister said.
He said the intervention is not intended to disrupt funding operations.
“Student funding will continue, including allowances, and appeals processes, and universities and TVET colleges will continue engaging NSFAS operationally.
“The purpose of the intervention is precisely to protect continuity and restore confidence,” he said.
Minister Manamela emphasised that the move is not about personalities or internal contestation, but about protecting students and safeguarding a critical public institution.
Professor Hlengani Mathebula brings more than 37 years of professional experience, including 24 years in the financial services sector. He has held senior executive and governance roles across public and private institutions, including the South African Reserve Bank and the South African Revenue Service (SARS).
At SARS, he served on the Executive Committee, with responsibility for Governance, International Relations, Strategy, Security, and Communications, and also served as Chief Risk Officer. He has also chaired the Eskom Pension and Provident Fund and served on the boards of major financial institutions and listed companies.
Currently, Prof Mathebula is a full Professor and Director of the Tshwane School for Business and Society at the Tshwane University of Technology, where he serves on the Senate and SENEX. He previously held a full professorship at the University of Limpopo’s Turfloop Graduate School of Leadership.
His academic qualifications include a PhD from the University of Pretoria, a Master of Management in Entrepreneurship and New Venture Creation from Wits Business School, and executive education from institutions including Harvard Business School. He is also a certified Executive Coach through the University of Cape Town and a Fellow of the Centre for Leadership and Public Values at Stanford University.
He currently serves as Chairperson of the Media Development and Diversity Agency (MDDA), a position to which he was appointed by the President in June 2021, and as an Independent Non-Executive Director of Shoprite Holdings.
According to the Minister, the Administrator’s mandate will focus on stabilisation, accountability, operational continuity and institutional renewal.
Key priorities include strengthening governance and internal controls, addressing audit weaknesses, accelerating ICT and systems integration reforms, stabilising student funding operations, improving oversight of student accommodation, resolving appeals backlogs, and preparing NSFAS for a return to stable ordinary governance.
The Administrator will be empowered, subject to approvals, to recruit individuals with expertise in audit remediation, ICT systems, governance, finance, risk management, legal services and organisational redesign to support the stabilisation process.
“The administration is intended as a temporary but necessary intervention to restore institutional credibility, operational effectiveness and public confidence in NSFAS,” Minister Manamela said.
He thanked both former and remaining board members for their service during what he described as a “difficult and complex period,” acknowledging that many had engaged the process in good faith.
Government, he added, remains committed to ensuring that NSFAS fulfils its mandate to poor and working-class students.
“We will continue engaging institutions, students, Parliament, National Treasury, organised stakeholders and the public as this process unfolds,” the Minister said.
