By Thapelo Molefe
The decision to place the National Student Financial Aid Scheme (NSFAS) under administration has been slammed by student leaders and the Economic Freedom Fighters (EFF), who say it could deepen instability in the higher education funding system.
Higher Education and Training Minister Buti Manamela announced on Monday that NSFAS had been placed under administration with immediate effect, citing governance failures, audit concerns, operational weaknesses and instability within the board.
He appointed Professor Hlengani Mathebula as administrator, saying the intervention was necessary to “restore institutional credibility, operational effectiveness and public confidence”.
However, the South African Union of Students (SAUS) has rejected the decision and the process, saying that there was no consultation with student stakeholders and that conditions did not justify an intervention.
“SAUS unequivocally rejects the decision and process of placing NSFAS under administration,” the organisation said in a statement on Tuesday.
“There has never been any consultation done with the South African Union of Students as the larger stakeholder in the sector.”
The union said it had not observed governance failures severe enough to warrant administration, adding that NSFAS operations had improved in recent years.
“From the lived realities of students, NSFAS has shown measurable improvements in its operations,” SAUS said.
“While challenges persist, the scheme is significantly more functional than in previous years, and does not reflect a system in crisis warranting administration.”
Manamela, however, said the decision followed a “long process of engagement, legal assessment, governance intervention, and consideration of alternatives”, pointing to a disclaimer audit outcome, material irregularities flagged by the Auditor-General, operational weaknesses, and ongoing governance instability within the NSFAS board.
SAUS also raised concerns about the timing of the intervention, noting it came shortly after steps were taken to stabilise leadership at the scheme, including the board’s move to regularise senior management.
“The sudden imposition of an administrator undermines the role of the Board and raises serious questions about what informed this decision,” the union said.
The organisation further questioned whether the minister had complied with Section 17A of the NSFAS Act, which allows the minister to appoint an administrator where there is serious financial or other maladministration, where NSFAS’s effective functioning is seriously undermined, or where the board requests such an appointment.
“The failure to clearly demonstrate compliance with the provisions of Section 17A suggests that due process may not have been fully adhered to,” SAUS said.
The union warned that repeated interventions at NSFAS have historically failed to produce stability.
“Over the past decade, NSFAS has been subjected to repeated cycles of administrations and acting leadership,” it said.
“These interventions have not produced lasting stability, but have instead deepened uncertainty.”
SAUS also highlighted outstanding policy issues, including 2026 funding guidelines, accommodation protocols and student allowances, which it said require urgent ministerial approval.
The EFF also criticised the move.
“The EFF condemns the placement of NSFAS under administration following leadership instability, board resignations, and ongoing conflict with the Minister of Higher Education,” the party said.
The EFF said the intervention risks creating conditions for further corruption.
“The appointment of an administrator without proper oversight creates dangerous conditions for corruption and looting,” it said.
The party added that thousands of Technical and Vocational Education and Training (TVET) students remain in limbo.
“More than 12,000 TVET students still have unconfirmed funding statuses while the academic year is already underway,” the EFF said.
Manamela sought to reassure students that the intervention would not disrupt funding or daily operations at NSFAS.
“Student funding will continue. Allowances will continue. Appeals processes will continue,” Manamela said, adding that the administration is a temporary measure aimed at stabilising the institution and returning it to ordinary governance.
SAUS has called on the minister to provide a “full, transparent, and lawful account” of the decision and indicated it will engage other student bodies on sector-wide challenges.
“The South African Union of Students will continue to defend the interests of students and will not remain silent in the face of decisions that risk plunging NSFAS back into instability,” the organisation said.
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