Buti Manamela said the move follows concerns over poor governance at NSFAS, as well as financial and operational failures at the student funding body. The decision was taken on Monday (4/5) in terms of sections 17A to 17D of the NSFAS Act of 1999.

The act gives the minister authority to appoint an administrator to take over the management, governance, and operations of NSFAS when serious financial or administrative failures are identified.

This action can be triggered by audit findings, reports of maladministration, or other circumstances that undermine the organisation’s effectiveness, or even at the request of the board itself.

The administrator is appointed for a period of up to two years, with a possible one-time extension of up to six months. Prof. Hlengani Mathebula was appointed as administrator.

“We are dismayed that the minister has gone and announced the appointment of an administrator without consulting us on the process to stabilise NSFAS,” said Nehawu spokesperson Lwazi Nkolonzi.

“We demand that the minister urgently re-examines his posture towards important stakeholders at the organisation, as the union shall not fight for its recognition at this age and stage of our democracy.”

This is particularly so at an institution they were instrumental in establishing as a transformative union, he said.

The minister outlined a series of events that led to the intervention, including concerns about the legality of the board’s constitution, which prompted the department to approach the courts through self-review proceedings.

Manamela said more than a hundred NSFAS officials have faced disciplinary action in the past two years amid governance failures, payment delays, and system breakdowns affecting accredited student accommodation providers.

The body had initiated both a legal review and a forensic review of the student accommodation project, which found that the entity lacked sufficient internal capacity to manage the system.

“The administration is not intended to disrupt NSFAS operations,” said Manamela. “Student funding will continue, allowances will continue, appeals processes will continue, and universities and TVET colleges will continue engaging the organisation operationally.”

“The purpose of the intervention is precisely to protect continuity and restore confidence.”

Meanwhile Solidariteit Helpende Hand’s Study Trust said when the system fails, students suffer, not knowing they’ll be able to attend class the following day.

“The current situation shows that the problem is not simply a lack of funding,” says Study Trust head Yolandi Theron. “It shows that a system without stable governance and accountability simply cannot hold, regardless of the size of its budget.”

The core of the crisis ran deeper than financing, she believed. It was about governance that didn’t hold, systems that didn’t function, and a growing loss of trust in an institution that was meant to be one of the country’s most important educational safety nets.

Solidariteit Helpende Hand executive director Hannes Noëth said while the intervention came late, it was necessary. “We’re grateful that the government has finally intervened and has not allowed a struggling process to continue indefinitely.

“We can now only hope that this intervention will be successful and that the necessary structures will genuinely improve for the benefit of students and the broader South African community.”

OFM News cvs

• Have a news tip to share? Phone or whatsapp the OFM News Hotline: 066 487 1427.