By Charmaine Ndlela
Universities South Africa has backed Higher Education and Training Minister Buti Manamela’s decision to place the National Student Financial Aid Scheme under administration, but warned that the intervention would not resolve the deeper structural problems facing the student funding system.
In a statement, USAf welcomed assurances that student allowances, funding disbursements, appeals processing and engagements with institutions would continue uninterrupted during the administration period.
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The organisation also welcomed the appointment of Professor Hlengani Mathebula as administrator.
The intervention follows Manamela’s announcement on May 4 after continued governance instability at NSFAS, including the resignation of two board members, among them acting chairperson Mugwena Maluleke.
Manamela cited a series of governance and operational failures behind the move, including a disclaimer audit outcome for the 2024/25 financial year, material irregularities flagged by the Auditor-General, and persistent weaknesses in internal controls.
The minister said the administrator would also be empowered to appoint specialist expertise in areas including audit remediation, ICT systems, governance, finance and legal services.
USAf said the administration could help stabilise the scheme in the short term, but would not address broader systemic weaknesses within NSFAS and the country’s student financial aid model.
“The challenges confronting NSFAS are indicative of serious structural deficiencies in the design, governance, and implementation of the country’s student financial aid system,” the organisation said.
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USAf cautioned that repeated administrative interventions and board changes over the years had failed to address the root causes of instability at NSFAS.
According to the organisation, the recurring cycle of crises, followed by the appointment of new boards, administrators and task teams, had produced only temporary stability before structural problems resurfaced, leaving students and universities to bear the consequences.
USAf called for a comprehensive national dialogue and systemic review of South Africa’s student funding model to ensure long-term sustainability, accountability and effectiveness.
