The National Student Financial Aid Scheme (NSFAS) has been placed under administration, with government stepping in to address what it describes as deep-rooted governance and operational failures.
Higher Education and Training Minister Buti Manamela announced the decision on Monday, 4 May, saying it followed a prolonged 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 stability critical to the higher education system.
Mounting problems at NSFAS behind the decision
Manamela said the intervention was made under the NSFAS Act after reviewing legal, financial, and governance concerns.
Among the key issues was uncertainty about the legality of the NSFAS Board’s constitution, prompting the department to approach the courts. The situation was further complicated by a wave of resignations, including that of the board chairperson, and ongoing disputes over governance processes.
Efforts to stabilise the board through interim measures were ultimately not enough.
At the same time, a series of internal challenges raised further concern. These included a disclaimer audit outcome for the 2024/25 financial year, material irregularities flagged by the Auditor-General, and weaknesses in consequence management.
Operational problems also came into focus, including data integrity issues, delays in IT system upgrades, unresolved student appeals, and ongoing concerns around student accommodation.
Administrator appointed to take over
As part of the intervention, Manamela appointed Hlengani Mathebula as NSFAS Administrator.
Mathebula brings more than 30 years of experience across the public and private sectors. His background includes roles in 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, while looking into 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 backlogs in student appeals.
Attention will also be given to fixing IT systems, improving accommodation oversight, and rebuilding confidence in the institution.
No disruption to student funding
Manamela 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 engagement with the scheme.
“The purpose of the intervention is precisely to protect continuity and restore confidence,” he said.
