The Roots of the NSFAS Governance Breakdown
The National Student Financial Aid Scheme (NSFAS), established to provide financial assistance to eligible students from low-income households attending South Africa's public universities and Technical and Vocational Education and Training (TVET) colleges, has long been a cornerstone of access to higher education. With a budget exceeding R54 billion for 2026 and supporting over 1.2 million students annually—approximately 580,000 at universities and 231,000 at TVET colleges—NSFAS plays a pivotal role in enabling post-school education for those from households earning less than R350,000 per year.
However, persistent governance challenges have undermined its effectiveness. The scheme's troubles trace back years, marked by irregular expenditure, procurement scandals, and leadership instability. In recent months, these issues escalated with a disclaimer audit for the 2024/25 financial year from the Auditor-General, highlighting material irregularities, data integrity problems, and failures in consequence management.
Timeline of NSFAS Administrations
NSFAS has now been placed under administration for the third time since 2018, signaling deep-rooted structural problems:
- 2018-2021: First administration under Randal Carolissen amid procurement irregularities and leadership disputes.
- April 2024 - February 2025: Second under Freeman Nomvalo, addressing funding delays, ghost students, and accommodation crises.
- May 4, 2026 - present: Third under Prof. Hlengani Mathebula, triggered by board resignations and operational paralysis.
This recurring cycle has cost the higher education sector dearly, with universities and TVET colleges repeatedly absorbing the fallout from delayed disbursements and unresolved appeals.
Triggering Events: Board Resignations and Quorum Collapse
The immediate catalyst was a wave of board resignations, reducing membership from 18 to just seven, preventing quorum and lawful decision-making. Key departures included interim chairperson Dr. Mugwena Maluleke, HR committee head Karabo Mohale, and former chair Dr. Karen Stander. Internal rifts over CEO appointments—pitting acting CEO Waseem Carrim against Prof. Busani Ngcweni—exacerbated tensions.
Minister Buti Manamela invoked Section 17A of the NSFAS Act, citing the board's incapacity. He emphasized, 'Government cannot knowingly ignore potential legal irregularities in the constitution of a statutory body entrusted with billions of rand in public funds and the futures of millions of students.'
Prof. Hlengani Mathebula: Background and Mandate
Appointed for 24 months, Prof. Mathebula brings over 30 years in governance, financial management, and regulatory leadership. Currently director at Tshwane University of Technology's School for Business and Society, he chairs the Media Development and Diversity Agency and serves on Shoprite's board. Despite a past precautionary suspension at SARS in 2019 following the Nugent Commission, his expertise is seen as key to stabilizing NSFAS.
His mandate focuses on restoring credibility, modernizing ICT systems, resolving appeals, and ensuring payment continuity to universities and TVET colleges. Early engagements with institutions signal a proactive approach.
Direct Impacts on South African Universities
Public universities like the University of the Witwatersrand (Wits), University of Cape Town (UCT), and University of Johannesburg (UJ) rely heavily on NSFAS for ~40-50% of undergraduate funding. Delays have led to registration blocks, with students unable to pay upfront fees despite approvals. In early 2026, over 200,000 new applicants faced provisional funding, straining institutional resources.
Universities South Africa (USAf) welcomes the intervention but warns of systemic flaws, noting repeated administrations fail to address policy and governance architecture. Institutions have subsidized shortfalls, diverting funds from research and infrastructure.USAf's full statement urges a comprehensive review.
Photo by Jan Antonin Kolar on Unsplash
TVET Colleges: Funding Gaps Hit Vocational Training
TVET colleges, vital for skills development, fund ~231,000 NSFAS students. Payment delays disrupt practical training, with equipment and materials going unused. Enrollment drops risk national skills shortages in trades like engineering and hospitality. Colleges report unresolved appeals numbering in thousands, blocking access for qualified applicants.
Student Hardships: Accommodation and Allowance Delays
Landlords housing NSFAS students face millions in unpaid rent, threatening evictions. In Johannesburg alone, providers warn of brink-of-collapse amid R21 million annual corruption losses previously. Students endure hunger and dropout risks, with dignity compromised in unsafe accommodations.
- Delayed book allowances halt studies.
- Accommodation crises expose safety vulnerabilities.
- Appeals backlog exceeds 100,000 cases.
Stakeholder Reactions: Divided Opinions
USAf supports stability but calls for overhaul. OUTA blames Manamela's delays, demanding accountability: 'The board collapse was preventable.'OUTA analysis. Unions like NEHAWU and EFF decry 'capture,' with board eyeing court interdict. Student bodies urge direct university payments.
Financial Scale and Audit Failures
| Year | Budget (R bn) | Students Funded |
|---|---|---|
| 2026 | 54.3 | 1.2m+ |
| 2025 | ~50 | 811k |
Disclaimer audits reveal irregular spending, with past losses to ghost students and tenders. Modernization lags exacerbate vulnerabilities.
Path to Recovery: Reforms Ahead
Mathebula prioritizes ICT upgrades, direct payments via universities extended into 2026, and board reconstitution. Long-term: policy review for sustainable model.
Photo by Drew Beamer on Unsplash
Implications for Higher Education Equity
This crisis threatens post-apartheid gains in access, with dropout rates rising amid funding uncertainty. Universities fear enrollment cliffs; solutions like hybrid funding models could stabilize.
Explore opportunities in South African higher education at university jobs or higher ed careers, where skilled administrators are in demand amid reforms.