Johannesburg – The National Student Financial Aid Scheme (NSFAS), South Africa’s largest student funding body, has been placed under administration following mounting governance, financial, and operational crises.
Higher Education and Training Minister Buti Manamela announced the move on Monday, 4 May 2026, citing deep institutional instability that threatened the scheme’s ability to deliver on its mandate.
NSFAS, which funds higher education for millions of poor and working-class students, has faced escalating challenges in recent years.
Minister Manamela stated that the decision to place NSFAS under administration followed extensive legal, governance, and financial assessments, as well as consultations with stakeholders.
“Government cannot knowingly ignore potential legal irregularities in the constitution of a statutory body entrusted with billions of rands in public funds and the futures of millions of students,” the minister said.
Concerns over NSFAS governance intensified after a series of board resignations, including the chairperson and deputy chairperson.
Attempts to stabilise the board through interim appointments failed, while disputes over governance processes and executive appointments deepened.
The Department of Higher Education also raised alarm over NSFAS’s 2024/25 disclaimer audit outcome, material irregularities flagged by the Auditor-General, weak consequence management, unresolved student appeals, ICT failures, and student accommodation shortcomings.
Minister Manamela stressed that alternatives such as filling board vacancies or issuing further directives were considered but deemed insufficient.
“I was not satisfied that continued Board-led governance, in the prevailing circumstances, would provide the level of assurance required to restore institutional stability, protect students and safeguard public resources,” he said.
Minister Manamela also announced that Professor Hlengani Mathebula has been appointed as Administrator.
With more than three decades of experience in governance, finance, and higher education leadership, Professor Mathebula is tasked with stabilising NSFAS operations, strengthening internal controls, accelerating ICT reforms, and resolving student funding backlogs.
He currently heads the Tshwane School for Business and Society at Tshwane University of Technology and has held senior roles at the South African Reserve Bank, SARS, and major financial institutions.
The administration is intended as a temporary but urgent measure to restore credibility and operational effectiveness.
Minister Manamela assured students and institutions that funding, allowances, and appeals processes would continue uninterrupted.
“This intervention is not about personalities or factions,” said Minister Manamela.
“It is about protecting students, stabilising a critical public institution, restoring accountability, and ensuring that NSFAS performs its mandate effectively and lawfully.”
Minister Manamela said the Department of Higher Education and Training will continue engaging universities, TVET colleges, students, and stakeholders as the administration unfolds, with the ultimate goal of returning NSFAS to stable governance.
