Higher Education Minister Buti Manamela. (Photo: Frennie Shivambu / Gallo Images) On 4 May, Higher Education Minister Buti Manamela placed the National Student Financial Aid Scheme (NSFAS) under administration for the second time in two years — reversing his previous pledge not to do so.
The intervention followed a leadership collapse triggered by the resignations of former chairperson Dr Karen Stander, interim chairperson Dr Mugwena Maluleke, and Karabo Mohale. Beyond the leadership vacuum, the decision was driven by deep-seated operational failures, including governance instability, ongoing issues with ICT infrastructure, persistent delays in student funding and an escalating student accommodation shortage.
This move marks a significant shift in Manamela’s stance. In a letter dated 23 January 2026, leaked to Daily Maverick, Manamela informed Maluleke that the NSFAS board should remain functional while legal reviews were ongoing.
The legal conflict stems from allegations that the board was appointed in violation of Section 5 of the NSFAS Act. At the time, Manamela argued that his hands were tied by the judicial process: “I instituted review proceedings in the high court, which directly relate to the board’s request and the issues raised in your correspondence…
“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,” said Manamela.
In the correspondence, Manamela acknowledged that the board was under significant governance pressure and recognised the severe operational risks involved. However, he maintained that the board’s authority remained intact based on established legal precedent.
Manamela explained: “I am advised that in accordance with the principle articulated in Oudekraal Estates (Pty) Ltd v The City of Cape Town and Others ... 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.”
Board members reminded Manamela of this in a statement on 30 April. They said, “No material change in circumstances has been identified that would justify the minister now departing from that stated position. The review proceedings remain pending, and the NSFAS board remains functional.”
Board members said they had received no official communication that court proceedings had been finalised, nor had they been consulted by Manamela before he placed the entity under administration.
They are initiating court action against Manamela, contesting his decision to place NSFAS under administration without consulting them.
“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,” read the statement.
Speaking to Daily Maverick on condition of anonymity, a board member said “We were called in a meeting, I think, on the 13th of April, where we were given an illegal instruction as a board by the minister to say he is still awaiting guidance on the issue of the CEO, so the board should suspend the appointment of the CEO and not deal with it, while the board was ready to finalise the appointment.”
This issue was also raised by the EFF’s Sihle Lonzi at a meeting of the Portfolio Committee on Higher Education on 6 May.
“There is a story going around that the minister was holding secret meetings with individual board members to try and lobby them and say, ‘I don’t want this one to be CEO; make this one a CEO.’ That is an overreach,” said Lonzi.
Daily Maverick sent questions to Manamela through his spokesperson, Matshepo Seedat, but had not received a response by the time of publication. This article will be updated once a response is received.
Student bodies voice disapproval
The president of the South African Union of Students, Dr Thato Masekoa, said, “We vehemently reject the placement of NSFAS under administration. We believe that NSFAS, in its current state, has been making significant progress and does not warrant placing it under administration.
“The truth about it is that stable leadership goes with continuity; that is what we wanted to do with the current CEO — we needed someone who has been in the sector and understands what all the stakeholders [need].”
/file/attachments/orphans/jpeg_647629.jpg "The SA Union of Students president, Dr Thato Masekoa. (Photo: SA Union of Students / Facebook)")
The South African Student Federation (SASF) leader, Keamogetswe Masike, said they were opposed to Manamela’s move.
“We are not persuaded that this decision is rooted in a genuine commitment to stabilising and rebuilding NSFAS. We call for a full and independent investigation into the conduct of the current minister responsible for higher education. There are serious concerns, decisions and actions that have not been adequately accounted for, including matters relating to governance appointments and broader institutional oversight,” said Masike. DM