South Africa's NSFAS placed under administration amid governance crisis

Africa, Education

PRETORIA, South Africa (NPA) — The National Student Financial Aid Scheme (NSFAS) has been placed under administration by the Minister of Higher Education and Training, Buti Manamela, following what he described as prolonged governance instability, legal concerns, and operational weaknesses threatening the institution’s credibility.

Announcing the decision on Monday, May 4, 2026, Manamela said the intervention was taken under sections 17A to 17D of the NSFAS Act, 1999, after “careful consideration of the legal, governance, financial and operational circumstances” affecting the scheme.

“NSFAS is one of the most important public institutions in our democratic project. It exists to ensure that young people from poor and working‑class backgrounds are able to access higher education and training. For many families, NSFAS is not an abstract institution — it is the difference between exclusion and opportunity, between hope and despair,” Manamela said.

The Minister cited concerns over the legality of the NSFAS Board’s constitution, multiple resignations including that of the chairperson, and disputes over governance processes and executive appointments. He noted that attempts to stabilise the Board through interim measures had proven insufficient.

Serious institutional challenges were also highlighted, including a disclaimer audit outcome for 2024/25, material irregularities flagged by the Auditor‑General, weaknesses in consequence management, unresolved student appeals, ICT delays, and failures in student accommodation.

Manamela announced the appointment of Hlengani Mathebula as NSFAS Administrator. Mathebula, who brings over three decades of experience in governance, financial management, and institutional leadership, currently serves as Director and Head of the Tshwane School for Business and Society at the Tshwane University of Technology. He has previously held senior roles at the South African Reserve Bank, the South African Revenue Service, and on several boards.

The Administrator’s mandate will focus on restoring stability, accountability, and operational continuity. Key priorities include strengthening governance and internal controls, addressing audit weaknesses, accelerating ICT reforms, stabilising student funding operations, improving accommodation oversight, resolving appeals backlogs, and preparing NSFAS for a return to stable governance.

Manamela reassured students and institutions that operations would continue uninterrupted. “The administration is not intended to disrupt NSFAS operations. Student funding will continue, allowances will continue, appeals processes will continue, [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.

He acknowledged the contributions of former and remaining Board members and reiterated government’s commitment to ensuring NSFAS fulfils its mandate. “We will continue engaging institutions, students, Parliament, National Treasury, organised stakeholders and the public as this process unfolds,” he added.