The National Student Financial Aid Scheme (NSFAS) Board has welcomed the Pretoria High Court’s decision to suspend the appointment of the scheme’s administrator and reinstate the board pending the final determination of its review application.
The court’s interim order allows the board to resume its governance responsibilities while Part B of the application, which seeks to have the administrator’s appointment reviewed and set aside, remains before the court.
In a statement, NSFAS said the board would resume its duties with immediate effect, with a focus on stabilising the institution, strengthening governance and fulfilling its statutory mandate to provide financial assistance to eligible students across the country.
The board also acknowledged concerns and issues that have emerged publicly regarding the institution, saying these would be addressed as a priority.
“Where any wrongdoing, misconduct and unlawful conduct is identified, appropriate action will be taken in accordance with the law and applicable governance processes,” the board said.
The board also reaffirmed its commitment to working constructively with Higher Education and Training Minister Buti Manamela and other stakeholders to address challenges facing NSFAS and the broader higher education sector.
Meanwhile, several stakeholders, including the National Education, Health and Allied Workers’ Union (NEHAWU), have welcomed the court ruling.
NEHAWU accused the minister of failing to take its advice into account before dissolving the NSFAS Board and appointing an administrator.
The union said its concerns were based on what it described as the scheme’s deteriorating governance and administration under previous administrators.
NEHAWU spokesperson Lwazi Nkolozi said the union had consistently raised concerns about maladministration, poor governance and weak administration at NSFAS.
The union said the scheme had moved from one crisis to another, undermining both NSFAS and the broader post-school education and training sector.
NEHAWU reiterated its call for NSFAS to be stabilised and for proper governance to be restored so that the scheme can effectively fulfil its mandate.
“As a union organising in the higher education sector, we remain more than ready to contribute towards the stabilisation of the scheme,” Nkolozi said.
The union said it wants NSFAS to operate in a stable environment and develop into a capable institution that can effectively expand access to higher education.
While the court ruling allows the board to return to its duties, the dispute over the administrator’s appointment remains unresolved pending the final determination of Part B.
