Minister of Higher Education and Training Buti Manamela has placed the National Student Financial Aid Scheme (NSFAS) under administration, citing governance instability, audit failures and operational challenges affecting student funding.
Announcing the decision in Pretoria, Manamela said the move follows prolonged efforts to stabilise the institution, which plays a critical role in providing financial support to students from disadvantaged backgrounds.
He said the intervention was made in terms of the NSFAS Act after multiple attempts to resolve governance issues failed to restore stability.
The minister pointed to a series of ongoing problems, including board instability, resignations, and a disclaimer audit outcome for the 2024/25 financial year. Additional concerns include irregularities flagged by the Auditor-General, weaknesses in accountability measures, data integrity issues, and delays in modernising ICT systems.
Operational challenges have also affected students directly, with backlogs in appeals, delays in funding processes and shortcomings in student accommodation oversight raising concerns about student welfare and institutional effectiveness.
Manamela said government had explored alternatives such as appointing interim leadership and increasing oversight, but concluded that these measures would not resolve the crisis in time.
Former South African Reserve Bank executive Hlengani Mathebula has been appointed as administrator, with a mandate to stabilise governance, address audit failures, improve systems and restore efficient funding operations.
Despite the intervention, Manamela assured that student funding and allowances will continue without disruption, and that universities and TVET colleges will maintain normal engagement with NSFAS.
He emphasised that the decision is aimed at restoring accountability and protecting the integrity of a key public institution, rather than being driven by internal politics.
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