NSFAS placed under administration in bid to restore “stability”

The Minister of Higher Education and Training, Buti Manamela, has placed the National Student Financial Aid Scheme (NSFAS) under administration, citing serious governance, financial, and operational challenges affecting the institution.

Announcing the decision during a media briefing on Monday, 4 May, Manamela said the intervention was necessary to restore stability and safeguard both students and public funds.

“NSFAS is one of the most important public institutions in our democratic project. For many families, NSFAS is not an abstract institution – it is the difference between exclusion and opportunity, between hope and despair,” he said.

The Minister confirmed that Professor Hlengani Mathebula has been appointed as administrator, tasked with leading the institution through a period of recovery and reform.

“After careful consideration of the legal, governance, financial and operational circumstances affecting NSFAS, and acting in terms of sections 17A to 17D of the National Student Financial Aid Scheme Act, 1999, I have taken the decision to place NSFAS under administration and appoint an administrator. This decision was not taken lightly. It follows a long process of engagement, legal assessment, governance intervention, and consideration of alternatives,” Manamela said.

The administrator’s mandate will focus on restoring governance, strengthening financial controls, addressing audit findings, and stabilising student funding operations. Despite the intervention, Manamela assured students and institutions that services will continue without disruption.

“Student funding will continue. Allowances will continue. Appeals processes will continue. The purpose of this intervention is precisely to protect continuity and restore confidence,” he said.

He further stressed that the decision was not politically motivated, but aimed at safeguarding a critical public institution.

“This intervention is not about personalities. It is not about factions. It is about protecting students, stabilising a critical public institution, restoring accountability, and ensuring that NSFAS performs its mandate effectively and lawfully,” Manamela said.