The Pretoria High Court has ordered the reinstatement of seven National Student Financial Aid Scheme (NSFAS) board members and suspended the appointment of Professor Hlengani Mathebula as administrator, dealing a major blow to Higher Education and Training Minister Buti Manamela’s intervention at the troubled student funding agency.
The interim ruling, handed down on Friday, 14 August, comes as the wider legal challenge against Manamela’s decision to dissolve the board and place NSFAS under administration remains before the court.
The seven board members approached the court after Manamela dissolved the board in May, placed NSFAS under administration and appointed Mathebula to oversee the organisation.
Judge Neil Labuschagne found that the minister had not properly consulted the board before appointing Mathebula and that the affected board members had not been given a meaningful opportunity to raise concerns about his suitability.
“The appointment of the second respondent [Mathebula] as administrator of the National Student Financial Aid Scheme (NSFAS) in terms of section 17A(1)(b) of Act 56 of 1999 (the ‘Act’) by the first respondent on 4 May 2026 is suspended pending finalisation of Part B,” the judgment states.
The court further authorised the seven reinstated board members to resume the management, governance and administration of NSFAS until the substantive review application is finally determined.
The legal dispute comes against the backdrop of mounting concerns about the governance and performance of NSFAS, which administers billions of rands in financial assistance for students at universities and TVET colleges across the country.
Manamela has previously defended his decision to intervene, arguing that the composition of the NSFAS board did not comply with the NSFAS Act and that the organisation had experienced serious governance and operational problems.
The minister’s intervention followed a period of instability at the funding scheme, including board resignations, governance concerns, audit-related issues, unresolved student appeals and challenges involving NSFAS systems and internal controls.
However, the court raised concerns about whether the minister had properly considered information relevant to Mathebula’s suitability for the administrator position.
Particular attention was given to adverse findings relating to Mathebula contained in the Nugent Commission of Inquiry into SARS, which investigated governance and corruption-related matters at the South African Revenue Service during the period under scrutiny.
Mathebula’s administration of NSFAS has also faced scrutiny in Parliament, with questions raised about expenditure on accommodation, hired vehicles and the appointment and remuneration of advisers.
Parliamentary scrutiny has included reported adviser arrangements costing about R9.9 million, with questions also raised about how some payments were processed.
The latest court ruling is significant for thousands of students who rely on NSFAS to cover tuition, accommodation, allowances and other study-related expenses. The scheme has long been a critical component of South Africa’s efforts to expand access to higher education for students from financially disadvantaged households.
Continued uncertainty over its leadership could therefore have wider consequences if it affects the processing of funding, student appeals or other essential services.
The reinstated NSFAS board has said stabilising the organisation and strengthening governance will be among its immediate priorities.
“The Board has noted the various concerns and issues that have emerged in the public domain regarding the institution and will attend to these matters as a priority. Where any wrongdoing, misconduct or unlawful conduct is identified, appropriate action will be taken in accordance with the law and applicable governance processes,” the board said.
It also signalled that it intends to work with the minister and other stakeholders despite the legal dispute.
“The Board further reaffirms its commitment to working constructively with the Minister of Higher Education and Training and all relevant stakeholders in addressing the challenges facing NSFAS and the broader higher education sector,” it said.
Manamela is considering the judgment and has sought legal advice on its implications and possible remedies. His department has also indicated that measures will be taken to ensure that student funding and other critical NSFAS functions continue without disruption.
The ruling does not bring the broader dispute to an end. The substantive Part B review, in which the former board members are seeking to have Manamela’s decisions reviewed and set aside, still needs to be heard and determined.
For now, however, the court order puts the seven NSFAS board members back in office and suspends Mathebula’s appointment as administrator while the wider legal battle continues.
