The Portfolio Committee on Higher Education and Training will at its next meeting discuss option on how to handle various issues that came out of the engagement with Minister Buti Manamela.
On Friday, he came to brief the committee on his decision to place the National Student Financial Aid Scheme under administration on the 4th May.
The Minister said the decision “was not a political fight with the board but a legal intervention to protect NSFAS and students.”
Minister Manamela clarified the status of a meeting he held with the NSFAS board members in April before the board was sacked on 4 May. Minister Manamela said the meeting was informal and that it was convened by his office following discussions he held with interim Chairperson of the board. “There had been board resignations. It is regrettable that there was one board member who did not get invited.” He clarified that he did not issue an instruction at the meeting as it related to the appointment of permanent CEO, instead, subsequent to the meeting reminded the board in writing “that the board needed to appoint the CEO by end of May.”
Minister Manamela explained that a number of factors motivated his decision to place the entity under administration and they included, but not limited to,
- operational failures
- Auditor General’s disclaimer for 2025,
- challenged data analytics,
- payment to 822 deceased students,
- funding of students whose families were above income threshold,
- unresolved appeals, and
- numerous board resignations including that of the Chairperson and the Deputy Chairperson.
Committee member, Ms Joy Maimela, said it was difficult to see how the administrator will resolve the challenges if two other administrators have failed before him.
“How do we move forward from where we are now; we have established some facts from concerned parties. The committee would need to reflect on the facts, and decide on how to move forward.”
She wondered if there was a link between dissolution of the board and the pending appointment of the CEO as had been alleged by some.
Minister Manamela assured the committee there was none.
The Chairperson, Mr Tebogo Letsie, concurred and said at the next committee meeting, the committee will have to reflect on the information it had.
“I agree with members we should meet as a committee on the wayforward and consider what was presented before us. We must try by all means to find amicable solutions to these governance challenge, and they should not affect the beneficiaries of the scheme who are poor and vulnerable students.”
He said when NSFAS failed vultures began to circle the vulnerable students whether on transport, accommodation and other needs for campus life.
Committee member, Ms Karabo Khakhau, said the choice of administrators that are being appointed in the sector did not sit well with her.
“The approach was clumsy Minister; you needed to assess whether NSFAS was delivering and whether an administrator was desired and whether the dissolved board members were able to do the job. My biggest problem with you is the choice of your administrators. These automatically poses doubts in my mind.” She cited other entities where administrator appointments had been engaged including at the Construction Education and Training Authority, and Local government Services SETA.
“I have a problem with you and your intentions; you identify a problem that we can all see, but in your decision to appoint people to resolve, you create a bigger problem. Do you believe that you intentions are honest,” Ms Khakau asked.
She said the need to place the entities under administration was there for all to see, but the problem is when questionable characters are appointed to lead a process to find solutions.
Minister Manamela appointed Prof Hlengani Mathebula as the administrator for the NSFAS, an appointment he said was “only temporary” and meant to last up to 24 months if there is no extension which is allowed for in legislation.
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