Higher Education Minister Buti Manamela dissolved the National Student Financial Aid Scheme (NSFAS) board on May 4, 2026 [1].
The move places the financial aid body under administration to address persistent governance failures and financial concerns that have plagued the organization. Because NSFAS manages critical funding for students, instability at the board level threatens the timely disbursement of grants and loans to thousands of learners.
Manamela met with the Portfolio Committee on Higher Education and Training for a full-day engagement to discuss the dissolution and the appointment of an administrator [2]. During the proceedings, the minister appointed Professor Mathebula to lead the scheme as administrator [3].
Addressing the committee and board members, Manamela said, "The intervention was not motivated by malice."
The dissolution follows a period of instability. Reports indicate this is the second time in two years that the scheme has been placed under administration [4]. However, other records suggest this marks the third time overall that NSFAS has been placed under administration [5].
Portfolio Committee Chairperson Tebogo Letsie addressed questions regarding the leadership of the organization. Letsie said, "No directive was issued to the NSFAS board concerning the appointment of the CEO."
The decision to dissolve the board comes as some board members planned to file a court interdict to challenge the minister's action [1]. Despite these legal threats, the government said that the intervention was necessary to stabilize the fund's operations, and ensure financial accountability [3].
“"The intervention was not motivated by malice."”
The repeated dissolution of the NSFAS board underscores a systemic crisis in the management of South Africa's student funding. By shifting from a board-led structure to a single administrator, the government is attempting to bypass internal governance deadlocks to ensure operational continuity. However, the frequency of these interventions suggests that the root causes of the financial and administrative failures remain unresolved.
