By Charmaine Ndlela
The troubled National Student Financial Aid Scheme (NSFAS) has appointed a senior Auditor-General official as interim chief executive, as it battles financial mismanagement, governance instability and leadership uncertainty.
Laurence Aadnesgaard, a chartered accountant who has been involved in auditing NSFAS for approximately nine years, took up the position on 1 November.
His appointment comes after former acting CEO Waseem Carrim was appointed chief executive of the Road Accident Fund (RAF) in September, leaving NSFAS facing another leadership transition.
NSFAS said Aadnesgaard would serve for six months or until a permanent CEO was appointed, whichever came first.
His appointment follows a resolution by the NSFAS Executive Committee in October.
Aadnesgaard takes over an organisation that has faced repeated governance failures, financial control weaknesses and intervention by the Department of Higher Education and Training.
NSFAS received a disclaimer of audit opinion for the 2024/25 financial year, the most serious audit outcome an institution can receive.
The Auditor-General identified nine material irregularities, including four newly reported cases, raising serious concerns about financial management, internal controls and accountability.
The problems prompted Higher Education minister Buti Manamela to place NSFAS under administration in May, citing governance instability, legal concerns and operational weaknesses.
However, in August, the Pretoria High Court suspended the appointment of the administrator and reinstated the NSFAS board pending the final determination of a legal challenge to the intervention.
Against this backdrop, NSFAS said Aadnesgaard’s appointment was intended to provide continuity in executive leadership and oversight while recruitment for a permanent CEO continued.
Interim board chairperson Advocate Richardt Tlou Ramashia said stabilising the organisation remained a priority.
“The Board’s priority is to ensure leadership continuity and organisational stability while the process of appointing a permanent Chief Executive Officer is underway,” Ramashia said.
“We are confident that Mr Aadnesgaard’s professional expertise, governance experience and institutional familiarity will assist NSFAS in maintaining focus on its mandate and strengthening accountability during this period.”
Aadnesgaard has worked at the Auditor-General South Africa (AGSA) since 2015 and has served as an audit manager since January 2023.
He holds a Bachelor of Commerce in Financial Accounting and a Postgraduate Diploma in Accounting from the University of Cape Town.
His professional experience includes public sector auditing, financial reporting, governance, risk management, internal controls and performance accountability.
According to NSFAS, his involvement in the organisation’s annual audits over about nine years has given him extensive knowledge of its operations, particularly its student loan book.
This includes financial modelling, loan recoveries, actuarial assumptions and the legislative and reporting frameworks governing the scheme.
The board said his experience would help NSFAS maintain operations while addressing its institutional challenges.
Ramashia also appealed for continued cooperation from stakeholders.
“We call on all stakeholders to continue working with NSFAS in the collective interest of students and the sustainability of the post-school education and training system.”
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