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Minister of Higher Education, Buti Manamela, has placed NSFAS (National Student Financial Aid Scheme) under administration.

Reason for Action

  • Poor governance and maladministration at NSFAS.

Why NSFAS Matters

  • For many families, NSFAS is not an abstract institution—it enables access to higher education.

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  • It can mean the difference between exclusion and opportunity, hope and despair.

Impact of Instability

  • Problems at NSFAS affect not only universities and TVET colleges but also students, households, and communities.

Government’s Responsibility

  • The government must act when an institution’s effective functioning is seriously undermined.

The Decision to Appoint an Administrator

  • Made after careful consideration of legal, governance, financial, and operational circumstances.

  • Done under Section 17A(2)(d) of the NSFAS Act (1999).

  • The decision was not taken lightly—it followed a long process of engagement, legal assessment, government intervention, and exploring alternatives.

Background: Board Concerns

  • When the Minister took office, concerns already existed about how the NSFAS Board was constituted.

  • The department went to court to review the legality of the board’s formation.

Resignations and Instability

  • The board experienced several resignations, including the Chairperson, Dr. Karin Stander, and other members.

  • An Interim Chairperson (Mugwena Maluleka) was appointed to stabilize governance.

Legal Contradiction in Filling Vacancies

  • Requests were made to fill board vacancies.

  • However, with a court case ongoing about the board’s legality, the government could not proceed as if the issue didn’t exist—doing so would have been contradictory and irrational.

Deepening Institutional Problems

  • Broader concerns at NSFAS continued to grow.

  • These did not come from rumor or speculation—they emerged from NSFAS’s own reports, governance records, engagements, and responses to the department.

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