Manamela places NSFAS under administration, board members plan to file court interdict

A full-blown institutional standoff has reached boiling point at the National Student Financial Aid Scheme (NSFAS), where the board and Higher Education Minister Buti Manamela have locked horns over control of the embattled entity.

This comes after Manamela placed the entity under administration, appointing Professor Hlengani Mathebula as the new administrator of the entity.

In 2019, Mathebula was placed on precautionary suspension by SARS and later parted ways with the tax revenue collector. This action followed recommendations from the Nugent Commission of Inquiry, which was investigating tax administration and governance at SARS.

Addressing a media briefing in Pretoria on Monday, 4 May 2026, Manamela said the decision came after a series of resignations, including that of former chairperson Dr Karen Stander, interim chairperson Dr Mugwena Maluleke and Karabo Mohale, head of the human resources and organisational development committee, along with other members.

“The directive followed serious concerns arising from, among other matters, the 2024-2025 disclaimer audit outcome, material irregularities identified by the Auditor-General, weaknesses in consequence management, serious data integrity concerns, unresolved student appeals caused substantially by system deficiencies, delays in ICT modernisation and system integration, student accommodation failures affecting student dignity and safety, and also broader governance and accountability concerns,” said Manamela.

“The department also became increasingly concerned about the pace and adequacy of remedial interventions within the institution. At the same time, governance instability within the board itself intensified. There were increasing disputes around governance processes, executive appointment processes, and broader governance matters,” said Manamela.

The concerns raised by Manamela have long existed. The last time NSFAS was placed under administration was by former Minister Blade Nzimande in April 2024. During that period, delays in funding, accommodation crises and lost funds to ghost students were reported until a board was appointed in February 2025. However, Manamela maintains that this move will bring stability.

Read more: NSFAS board finally appointed in effort to fix financial and governance crises

“I was not satisfied that the ordinary governance arrangements were capable of adequately stabilising the institution within the agency and the seriousness of the challenges confronting NSFAS... The administrator’s mandate will … [prepare] the institution for a return to stable, ordinary governance,” said Manamela.

Board members head to court

Speaking to Daily Maverick on condition of anonymity, a board member said they would take the matter to court. “We are launching an urgent court interdict for placing the entity under administration. The claims that he [Manamela] makes are unfounded, actually. He requested the presentations, but he did not come back to us and tell us that he was not satisfied with our representations... To place this board under administration based on the historical performance of the previous administration is unjust.

“Since we have arrived, the speed at which we were paying accommodation providers, the speed at which we were paying student allowances, ever since we have arrived that has been improved. The Minister is pushing by hook or crook to bring his own friends into the NSFAS, and we don't know for what good reason,” said the board member.

Meanwhile, Economic Freedom Fighters’ Sihle Lonzi told Daily Maverick that the moves were to capture the entity. “Where you have got different levels of accountability, that’s good governance. So once you place an entity under administration, you undermine all those different layers of governance, and one of the biggest reasons they do that is because they want to put their hands in the cookie jar,” said Lonzi.

“NSFAS was placed under administration before. There were no improvements. In fact, things went from worse to worse. The student accommodation was a mess. Payment of student allowances was a mess. Renting of the building in Cape Town and decentralisation of NSFAS were a mess... We’re going to check the biography of this gentleman (Mathebula). We have to call him (Manamela) to Parliament and ask him those very difficult questions. And when he fails to answer, we take the next steps, which may include litigation, and mass mobilisation of young people,” said Lonzi.

Crisis background

The crisis intensified after the resignations of former acting chairperson Dr Mugwena Maluleke and Karabo Mohale, head of the Human Resources and Organisational Development (HROD) Committee.

In a letter dated 28 April 2026, seen by Daily Maverick, the Minister notified remaining board members of his intention to invoke Section 17A of the NSFAS Act, a provision that would allow him to appoint an administrator to take over the scheme’s management.

“The cumulative effect of these resignations is that the board is no longer capable of constituting itself in a manner that enables lawful and effective decision-making, including the inability to reliably meet quorum requirements. As a consequence, the board is unable to take binding decisions, exercise fiduciary oversight or discharge its statutory functions in terms of the Act and the Public Finance Management Act,” said Manamela.

The CEO question

Resignations and administration issues came as three candidates, Waseem Carrim, Professor Busani Ngcweni and Lindiwe Kwele, were recommended for the CEO position. The board recommended Carrim. While Manamela officially notified board members of his intention to appoint an administrator on 28 April 2026, a day before the resignations were announced publicly, a confidential HR report leaked to Daily Maverick dated 22 April 2026 suggests the crisis was triggered by a deep rift over who should lead the organisation.

By a majority vote of four to one, the committee, in which Mohale was involved, recommended Carrim for the permanent position, with a proposed maximum salary package of R3.5-million.

However, there was a rare public fracturing within the board. Chairperson of the HROD committee, Mohale, formally went on record to oppose her own committee’s decision. In the document, it states that:

“The Committee Chairperson, Ms Karabo Mohale, recorded a dissenting view, indicating her support for the panel report and the recommendation of Prof Busani Ngcaweni as the preferred candidate. The Committee resolved that the recommendation to the Board would include the individual motivations and detailed views expressed by all members during deliberations, to ensure transparency and a full record of the differing perspectives.”

Mohale’s opposition to her own committee’s majority decision raised the eyebrows of one of the board members Daily Maverick spoke to, with allegations emerging that she was aligned with the minister and under pressure to influence the outcome. After failing to sway the committee, she resigned.

Responding to these allegations, Mohale told Daily Maverick that she was a member of an independent panel comprised of individuals drawn from within the Post-School Education and Training (PSET) sector. “I did not chair the panel… To the best of my knowledge, NSFAS followed a dual recruitment approach for the CEO position, which included both a public advertisement and a headhunting process,” said Mohale.

She said she was not in a position to confirm that she had recorded a dissenting view after the committee (four to one) voted for Waseem as CEO, against her vote for Busani.

Responding to the allegations that she had close ties with Manamela and had been given a political task, she said, “I categorically deny any suggestion that I have close personal ties with the Minister or that my role as a board member was influenced by any political instruction or mandate. I was appointed to the Board by Dr Nobuhle Nkabane. My interactions with Mr Buti Manamela have been strictly professional, including during my tenure at the National Youth Development Agency and in his current capacity as executive authority of NSFAS.

“My resignation was a personal and considered decision, formally communicated to the former interim chairperson and acknowledged by the Minister of Higher Education and Training. The governing legislation permits board members to resign, and such resignation is a lawful governance mechanism. My resignation was not influenced by the outcome of any process, and any suggestion of such would be malicious and defamatory,” said Mohale.

Daily Maverick sent questions to Manamela about allegations of close ties with Mohale and issues with the board. No response has been received.

Meanwhile, Carrim told Daily Maverick, “I applied for the post of CEO of NSFAS in June 2025. I participated in the interviews, wrote a psychometric assessment and subjected myself to criminal, credit and qualification checks in the month of April 2026. I have not had any outcome of the above process communicated to me. I will continue to serve in my current role … until advised otherwise,” said Waseem.

INTERVIEW

NSFAS acting CEO Waseem Carrim on plans to tackle crises

March 17, 2025

Meanwhile, Maluleke, through his lawyer Modidima Mannya, told Daily Maverick that he had made the reasons for his resignation public and had informed the Minister in terms of Section 7(1)(a).

“When Dr Maluleke assumed the position of interim chairperson, it was understood that this would be for a short period of time. Dr Maluleke acted in terms of and complied with Section 7(1)(a) of the NSFAS Act. Dr Maluleke resigned for personal reasons, and due to the heavy workload related to his academic studies. Dr Maluleke, having resigned from the board of NSFAS, does not wish to make any public statements as a measure of respect to the institution and its board. Any questions must be directed to NSFAS,” said Mannya.

‘We can govern’

The remaining NSFAS board members are refusing to yield. In a strongly worded letter dated 30 April 2026, the board rejected the minister’s assertion that it was incapable.

“The board does not accept the Minister’s characterisation that it ‘is no longer capable of constituting itself in a manner that enables lawful and effective decision-making.”

They emphasised that it was the minister’s responsibility to fill vacancies.

Section 8 states that “if the chairperson or a member vacates his or her office, the resultant vacancy must be filled by appointment or co-option in accordance with section 5.

“The Minister has the obligation to fill the existing vacancies by effecting Ministerial appointments… Section 4A of the Act provides the Minister with the power to issue a directive to the Board before proceeding to administration. No such directive has been issued,” said the board.

In a pointed rebuttal, the board also reminded Manamela of his earlier stance on the matter, quoting from his letter dated 23 January 2026:

“Considering the pending review proceedings, this matter is sub judice, and I am accordingly precluded from taking any administrative action that could affect the issues under judicial determination… I am advised that in accordance with the principle articulated in Oudekraal Estates (Pty) Ltd v The City of Cape Town and Others 2004 (6) SA 222 (SCA), the current board continues to exist and to exercise its powers in fact and in law until such time as the impugned decisions are set aside by a court of competent jurisdiction.”

Manamela thanked the board for its service and said he wished everyone well. DM