Nsfas Board Moves To Block Administration As Legal Battle With Minister Escalates

The fight over control of the National Student Financial Aid Scheme (Nsfas) has intensified, with its board launching urgent legal action to halt a government intervention.

Seven remaining board members are seeking to interdict Higher Education and Training Minister Buti Manamela’s decision to place the scheme under administration. They aim to prevent the appointment of Prof Hlengani Mathebula as administrator and suspend the implementation of the move.

The board argues that the minister’s decision was procedurally flawed and weakened its authority. Advocate Tlou Ramashia has been mandated to represent the board and file affidavits in the matter.

Nsfas Board Challenges Administration Decision In Court

In its statement, the board confirmed it is pursuing urgent relief in the high court to maintain the current state of affairs until a full judicial review is conducted.

“The board considers it necessary and appropriate, in the interests of Nsfas, the board, good governance, legality, procedural fairness and the preservation of the status quo, to authorise urgent legal proceedings to interdict, restrain and/or suspend the contemplated or intended appointment of an administrator and/or the implementation of any such appointment,” the board said.

Board members maintain that placing Nsfas under administration is neither justified nor lawful. They also allege that Manamela failed to properly consult the board, as required under the Nsfas Act.

One board member, speaking anonymously, further claimed that the minister had not fulfilled his legal obligation to ensure a fully functional board was in place.

Governance Concerns And Board Vacancies Spark Dispute

According to insiders, the Nsfas Act provides for an 18-member board, with 13 appointments made by the minister. However, several positions remain vacant following resignations.

Board members questioned why Manamela allegedly “refused without reason” to appoint at least six additional members to stabilise governance structures.

The dispute also centres on the appointment of a permanent chief executive officer. The board claims the recruitment process was disrupted when an allegedly unqualified candidate was introduced under controversial circumstances.

Committees reportedly rejected the candidate based on established criteria, prompting what the board describes as ministerial intervention.

A senior board member alleged that Manamela directly contacted members, instructing them to pause the CEO appointment process, before later warning of administrative action.

Allegations Of Interference And Fallout Within The Board

The tensions are said to have contributed to multiple resignations, including interim chair Mugwena Maluleke and committee chair Karabo Mohale.

Another board member claimed they discovered their removal through media reports, just a day before appearing before Parliament’s portfolio committee on higher education.

The scheduled appearance was expected to address questions regarding a meeting allegedly convened by the minister with selected board members, linked to the CEO recruitment process.

“The minister’s motive to push the preferred candidate was so that they could enable systemic looting of the fund,” the board member said.

Flights booked for board members to travel to Cape Town were reportedly cancelled on Monday.

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“The minister did not want us in parliament as he was afraid of what we might reveal to parliament about his conduct,” the source added.

Board members also disputed claims that they were responsible for past financial irregularities, noting that the R2 billion payments scandal occurred between 2016 and 2021, before the current board took office just over a year ago.

Manamela has actively claimed not to have interfered in the board’s affairs in any way, shape or form.