A High Court ruling has thrown fresh attention on the governance of the National Student Financial Aid Scheme (NSFAS), after the court overturned Higher Education Minister Buti Manamela’s decision to place the student funding body under administration.
The Pretoria High Court on Friday suspended the appointment of Professor Hlengani Mathebula as NSFAS administrator and ordered the remaining board members to resume their duties.
The ruling followed a legal challenge by seven NSFAS board members, who opposed Manamela’s decision to dissolve the board in May and place the scheme under administration.
Manamela had maintained that the board was no longer properly constituted because of vacancies and was therefore unable to operate effectively.
However, the court found that the remaining members could still form a quorum and continue carrying out the board’s responsibilities.
OUTA raises questions over ministerial oversight
The ruling has prompted criticism from the Organisation Undoing Tax Abuse (OUTA), which says the governance problems at NSFAS should have been addressed before they escalated into a crisis.
OUTA claims Manamela had been warned as early as January about vacancies on the board but failed to fill them.
The watchdog argues that the failure to address the vacancies contributed to the circumstances that ultimately led to the minister’s intervention.
OUTA said the judgment raises concerns about the minister’s handling of NSFAS and his broader ability to provide effective oversight of the department.
The organisation has gone further, calling on President Cyril Ramaphosa to reconsider Manamela’s position as Higher Education Minister.
The court ruling does not resolve the wider challenges facing NSFAS, but it has placed renewed focus on the governance of an institution responsible for providing financial support to thousands of students across South Africa.
For NSFAS, the immediate priority will now be navigating the return of the board while addressing the governance and administrative challenges that prompted the minister to intervene in the first place.