PRETORIA — The highly anticipated NSFAS board reinstatement has officially taken effect following a landmark interim ruling by the Pretoria High Court, which simultaneously suspended the controversial appointment of the scheme’s new administrator. The judgment marks a significant victory for civil society advocates who challenged Higher Education Minister Buti Manamela’s decision to dissolve the entity’s leadership, citing severe procedural flaws and alleged political interference.
The court granted interim relief to restore the board as part of “Part A” of a broader review application. “Part B” of the application will determine whether the administrator’s appointment is set aside permanently. Following the ruling, the reinstated board announced it will resume its duties with immediate effect, prioritizing institutional stabilization, the strengthening of governance, and the urgent addressing of public concerns regarding any unlawful conduct within the entity.
Organisation Undoing Tax Abuse (OUTA) CEO Wayne Duvenage praised the seven board members for their commendable legal challenge against the dissolution. According to Duvenage, the Minister failed to follow proper legal procedures, neglected to consult adequately, and incorrectly assumed the board was inquorate. He argued that the board only became inquorate because the Minister deliberately delayed filling critical subcommittee vacancies since late last year, thereby creating a toxic administrative environment.
The court’s suspension of Hlengani Mathebula as the scheme administrator addresses secondary but critical concerns raised by civil society. Questions were brought forward regarding Mathebula’s past tenure at the South African Revenue Service (SARS), as highlighted during the Nugent Commission. However, Duvenage emphasized that the primary legal victory rests on the unlawfulness of the Minister’s initial decision to disband the board, rather than just the suitability of the administrator.
Prior to its dissolution on April 29, the board had recommended the appointment of a permanent CEO—a move Duvenage claims the Minister attempted to block with ulterior motives. Pointing to a broader pattern of political interference across various Sector Education and Training Authorities (SETAs) and NSFAS, Duvenage highlighted questionable executive appointments, such as the INCA CEO, and a consistent failure to manage departmental fallout. Consequently, OUTA is officially calling for the Higher Education Minister to be removed from his position, arguing his track record of maladministration proves he is unfit for the role.
Despite the high-level leadership turmoil, the hundreds of thousands of students relying on the National Student Financial Aid Scheme will not face immediate funding disruptions. Duvenage noted that administrative rectifications initiated under former chairperson Dr. Karen Stund and currently managed by Acting CEO Wasim Karim have stabilized the payout processes. Karim, the entity’s former CFO, is widely supported by OUTA to be confirmed as the permanent CEO, a resolution the reinstated board had already agreed upon before being unlawfully dissolved.
Addressing public discourse on fixing the entity—with recent public polls showing 41% of citizens favoring direct cash payments to students—Duvenage advised against this model. Instead, he advocated for strong, independent board oversight and direct funding to educational institutions. He warned that taking over student accommodation administration stretches the entity too thin and distracts from its core mandate.
Duvenage urged a return to administrative basics, emphasizing the need to allow independent institutions to manage their own affairs free from executive political meddling. He referenced past governance failures, such as the controversial appointment and subsequent firing of former CEO Andile Nongogo by former minister Blade Nzimande, as historical proof of the systemic damage caused when political interference goes unchecked. Moving forward, the reinstated board’s immediate agenda is expected to focus on appointing a new chairperson, finalizing executive leadership, and operating independently of ministerial overreach.