Minister of Higher Education and Training Buti Manamela has placed the National Student Financial Aid Scheme (NSFAS) under administration, appointing Professor Hlengani Mathebula as administrator. The decision follows resignations from key board members and ongoing governance issues. The board plans to challenge the move in court.
On Monday, 4 May 2026, Buti Manamela announced in Pretoria that he had placed NSFAS under administration, citing a 2024-2025 disclaimer audit outcome, material irregularities by the Auditor-General, data integrity concerns, unresolved student appeals, delays in ICT modernisation, student accommodation failures, and governance instability.
Resignations included former chairperson Dr Karen Stander, interim chairperson Dr Mugwena Maluleke, and Karabo Mohale, head of the human resources and organisational development committee. Manamela invoked Section 17A of the NSFAS Act on 28 April 2026, stating the board could no longer meet quorum requirements or exercise oversight. This follows a prior administration period under former Minister Blade Nzimande from April 2024 to February 2025.
A board member, speaking anonymously to Daily Maverick, said they would file an urgent court interdict, rejecting claims of maladministration. "The claims that he [Manamela] makes are unfounded... To place this board under administration based on the historical performance of the previous administration is unjust," the member stated.
The crisis links to disputes over CEO candidates: Waseem Carrim, Professor Busani Ngcweni, and Lindiwe Kwele. The board recommended Carrim by a four-to-one vote, but Mohale dissented in favour of Ngcweni and later resigned. Remaining board members rejected Manamela's directive in a 30 April 2026 letter, asserting they could still govern.
In Johannesburg, accommodation providers like Duan Coetzee of Urban Ocean face unpaid debts of R4.5-million since 2024, risking evictions for 400 students. Providers report verified claims yet no payments, exacerbating financial strain.
