Higher Education Minister Buti Manamela placed the National Student Financial Aid Scheme under administration on 4 May, marking the second such intervention in two years and reversing his earlier commitment to avoid action until legal matters concluded.
The decision followed the resignations of chairperson Dr Karen Stander, interim chairperson Dr Mugwena Maluleke and Karabo Mohale, which created a leadership vacuum at the scheme. Operational problems including governance instability, ICT infrastructure failures, delays in student funding and a shortage of accommodation also contributed to the move.
In a letter dated 23 January Manamela had told the board that no administrative steps would be taken while court proceedings continued over the board’s appointment under Section 5 of the NSFAS Act. He wrote that the matter was sub judice and that the board retained its powers until a court ruled otherwise.
Board members stated they received no prior consultation and are now preparing court action. They noted that Section 4A of the Act requires the minister to issue a directive before administration. Student groups including the South African Union of Students and the South African Student Federation have rejected the decision, arguing that NSFAS had been making progress under stable leadership.