NSFAS Under Administration as Government Moves to Stabilise Student Funding Scheme
Minister appoints Professor Hlengani Mathebula to restore governance, protect students and rebuild institutional credibility
The National Student Financial Aid Scheme (NSFAS), South Africa’s primary vehicle for funding students from poor and working‑class households, has been placed under administration.
The dramatic action follows a prolonged governance and operational crisis that Minister of Higher Education and Training Buti Manamela said could no longer be resolved through ordinary board structures.
Announcing the decision at a media briefing in Pretoria on Monday, Manamela confirmed the appointment of Professor Hlengani Mathebula as Administrator of NSFAS, in terms of sections 17A to 17D of the NSFAS Act. The intervention, he said, followed months of legal assessment, governance engagement and the exhaustion of alternative remedies as instability at the scheme deepened.
The move comes against the backdrop of audit disclaimers, material irregularities flagged by the Auditor‑General, governance collapses and persistent system failures — developments the Minister said posed a direct risk to students, public funds and confidence in the state’s ability to deliver social justice through higher education.
“NSFAS is one of the most important public institutions in our democratic project,” Manamela said.
“For many families, NSFAS is not an abstract institution — it is the difference between exclusion and opportunity, between hope and despair. Any instability within NSFAS therefore has far‑reaching implications, not only for universities and TVET colleges, but for households, communities, the fiscus and public trust in the democratic state. Government has a responsibility to act when the effective functioning of such an institution is seriously undermined.”
Why government intervened
According to the Minister, the NSFAS crisis was driven by a convergence of legal irregularities, governance breakdowns and institutional weaknesses that steadily eroded the scheme’s ability to function effectively.
Concerns around the legality of the NSFAS Board were already present when Manamela assumed office, prompting the Department of Higher Education and Training to institute a court‑based self‑review of how the board had been constituted. This legal process unfolded alongside a series of resignations, including that of the board chairperson, further weakening governance stability.
Although interim leadership was appointed in an effort to stabilise operations, unresolved legal questions made it untenable to simply fill board vacancies. At the same time, information emerging from NSFAS itself and engagements with the Department pointed to deepening systemic problems.
These included a disclaimer audit outcome for the 2024/25 financial year, material irregularities identified by the Auditor‑General, weak consequence management and serious concerns around data integrity. Operational failures compounded the crisis, manifesting in unresolved student appeals linked to system deficiencies, delayed ICT modernisation, and accommodation failures that affected student safety and dignity.
Manamela said the central issue ultimately shifted from whether the board could technically continue to operate to whether NSFAS, as an institution, was functioning “effectively, sustainably and credibly in the interests of students and the country”.
Following the resignations of the interim chairperson and deputy chairperson, the Minister initiated the formal statutory process toward administration, consulting remaining board members and assessing alternatives such as intensified oversight or additional time for governance recovery. These options, he said, no longer offered sufficient assurance.
Who is the Administrator?
The appointment of Professor Hlengani Mathebula signals government’s intention to stabilise NSFAS through experienced, independent leadership.
Mathebula brings more than 30 years of experience across public governance, higher education, financial services and public institutions. His career includes senior roles in corporate and central banking, public finance and institutional leadership, with governance experience at entities such as the South African Reserve Bank and the South African Revenue Service. He has also served in leadership roles within major financial institutions.
Currently Director and Head of the Tshwane School for Business and Society at the Tshwane University of Technology, Mathebula has held professorial, Senate and governance roles within the university sector — experience the Minister said would be critical in navigating NSFAS’s complex relationship with institutions and students.
What the Administrator must do
Mathebula’s mandate focuses on stabilisation, accountability, operational continuity and institutional renewal. His responsibilities include strengthening governance and internal controls, addressing audit failures and consequence‑management weaknesses, accelerating long‑delayed ICT modernisation, stabilising student funding operations and improving oversight of student accommodation.
He is also tasked with clearing appeals backlogs and preparing NSFAS for a return to stable, lawful and ordinary governance. The administration, Manamela emphasised, is intended to be temporary but necessary to restore institutional credibility and safeguard public funds.
What it means for students
Seeking to reassure students and institutions, the Minister stressed that the intervention is not intended to disrupt funding or academic operations.
“Student funding will continue. Allowances will continue. Appeals processes will continue,” Manamela said, adding that universities and TVET colleges would maintain operational engagement with NSFAS.
“This intervention is not about personalities or factions,” he said. “It is about protecting students, stabilising a critical public institution, restoring accountability and ensuring that NSFAS delivers on its mandate effectively and lawfully.”
NSFAS supports hundreds of thousands of students annually and remains central to government’s commitment to widening access to higher education. Manamela concluded by reaffirming the state’s resolve to ensure the scheme fulfils its mandate to poor and working‑class students, while engaging Parliament, institutions and the public as the administration unfolds.
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