Ramaphosa Voices Alarm Over NSFAS Turmoil Amid Court Ruling

President Cyril Ramaphosa has raised significant concerns regarding the ongoing turmoil at the National Student Financial Aid Scheme (NSFAS). His remarks come after a Gauteng High Court ruling ordered the suspension of administrator Hlengani Mathebula, putting the future of the scheme under scrutiny.

Ramaphosa's spokesperson, Vincent Magwenya, confirmed that the President is awaiting a detailed briefing from Higher Education Minister Buti Manamela regarding the court's decision and its implications. "The governance and financial stability of this institution is vital in promoting access to higher education for millions of deserving young people," Magwenya stated, emphasizing the need to stabilize NSFAS to fulfill its mandate.

The court's ruling, issued on August 14, came as Ramaphosa was engaged in Southern African Development Community (SADC) activities. The court ordered Manamela to reinstate the NSFAS board and suspended Mathebula, who had been appointed as administrator amid ongoing governance issues. The Higher Education Portfolio Committee chair, Tebogo Letsie, criticized Manamela's interpretation of the NSFAS Act, asserting that the committee had requested legal advice from the department by the end of the week.

Letsie highlighted that the NSFAS Act's provisions should not be applied selectively, especially regarding payments made to individuals not entitled to funds, which could lead to criminal charges. He confirmed that involved officials would be reported to their professional bodies for further investigation and that recovering misallocated public funds is a priority.

Despite the funding increase in 2025, where NSFAS supported over 811,000 students, operational failures have persisted. Accommodation has emerged as a significant issue, with many students facing eviction due to delayed payments from NSFAS. Protests erupted earlier this year over the urgent need for housing solutions, with NSFAS admitting a debt of R44 million to landlords.

Since his appointment, Minister Manamela has been tasked with restoring trust in NSFAS and addressing its persistent challenges. After dismissing former Minister Nobuhle Nkabane, who faced backlash for attempting to appoint ANC politicians to key positions, Ramaphosa appointed Manamela as the new minister of higher education. However, Manamela's decisions, including placing three Sector Education and Training Authorities (Setas) under administration, have faced criticism from MPs.

Further complicating matters, the NSFAS board has seen multiple resignations, and Manamela's decision to appoint Mathebula as administrator has been controversial. Following Mathebula's appointment, investigations revealed questionable spending practices, including a R9,200 hotel bill for a stay he ultimately did not use. Critics argue this constitutes wasteful expenditure.

On August 14, the Gauteng High Court's ruling to suspend Mathebula highlighted doubts about his suitability for the role, citing his previous issues with the South African Revenue Service (SARS). Judge Etienne Labuschagne expressed concern over having an administrator with a questionable history manage NSFAS, stating, "It cannot be in the interests of NSFAS to be governed by such an administrator." The court's decision also mandated the immediate reinstatement of the NSFAS board members while the case awaits further review later this year.

Source: www.dailymaverick.co.za