In a dramatic move that has sent shockwaves through South Africa's higher education sector, Minister of Higher Education, Science and Innovation Buti Manamela announced on May 4, 2026, that the National Student Financial Aid Scheme (NSFAS) has been placed under administration for the third time since 2018. This intervention dissolves the current NSFAS board amid a deepening governance crisis characterized by resignations, audit failures, and operational breakdowns. With NSFAS responsible for funding over 1.2 million students at universities and Technical and Vocational Education and Training (TVET) colleges, the decision underscores the precarious state of student financial aid in the country.
The scheme, which disburses a staggering R54.3 billion annually from the national budget, supports poor and working-class students pursuing qualifications at public higher education institutions. Yet, persistent mismanagement has eroded public confidence, leading to delays in payments, unresolved appeals, and even payments to ineligible or deceased beneficiaries.
Understanding NSFAS: Backbone of Access to Higher Education
The National Student Financial Aid Scheme (NSFAS), established under the NSFAS Act of 1999, is a public entity designed to provide financial assistance to eligible South African students from low-income households. It covers tuition, accommodation, living expenses, books, and learning materials for both undergraduate and postgraduate studies at the country's 26 public universities and 50 TVET colleges.
In the 2026 academic year, NSFAS approved funding for approximately 1.24 million students, including 692,704 first-time entrants and 550,959 continuing students. This massive operation represents a cornerstone of South Africa's post-apartheid transformation efforts, enabling historically disadvantaged youth to access tertiary education. However, the system's scale has amplified vulnerabilities, turning minor administrative glitches into nationwide crises.
Funding is allocated through a household income threshold—currently R350,000 per annum—with additional criteria for academic performance and South African citizenship. Universities and TVET colleges submit student data for verification, but integration failures have led to discrepancies, such as the infamous 'ghost students' issue.
The Timeline of Turmoil Leading to Intervention
The path to the latest administration was paved by a series of escalating failures. Here's a step-by-step breakdown:
- February 2025: New board appointed by former Minister Nobuhle Nkabane post previous administration.
- June 2025: CEO recruitment begins; candidates include acting CEO Waseem Carrim, Prof Busani Ngcweni, and Lindiwe Kwele.
- January 2026: Minister Manamela warns board amid ongoing high court review of its constitution.
- April 2026: Leaked HR report reveals board rift; HROD committee votes 4-1 for Carrim, but chairperson Karabo Mohale dissents. Multiple resignations follow, including interim chair Dr Mugwena Maluleke and Mohale.
- April 28, 2026: Manamela notifies board of intent to administer under Section 17A of NSFAS Act due to quorum loss.
- May 4, 2026: Board dissolved; Prof Hlengani Mathebula appointed administrator for up to 24 months.
| Period | Administrator | Key Outcome |
|---|---|---|
| Aug 2018 - Dec 2021 | Randal Carolissen | Stabilized post-corruption probes but issues lingered |
| Apr 2024 - Feb 2025 | Freeman Nomvalo | Failed to resolve payment delays, accommodation crises |
| May 2026 - Present | Hlengani Mathebula | Ongoing stabilization efforts |
Governance Breakdown: From Board Resignations to Quorum Collapse
The board, meant to have 18 members, dwindled to seven due to resignations triggered by internal disputes, particularly over the CEO appointment. Acting CEO Waseem Carrim was favored by the majority, but dissent from Mohale—allegedly influenced politically—sparked chaos. Manamela cited inability to achieve quorum for decisions, legal irregularities, and failure to fill vacancies as key triggers.
Political accusations flew, with the EFF claiming Manamela sought to install allies, delaying CEO recruitment for 'political consultations.' The board countered that improvements in allowance payments had been made under their watch.
Audit Disasters and Financial Mismanagement
The Auditor-General's 2024/25 report delivered a disclaimer opinion—the worst possible—highlighting material irregularities. Key issues included:
- Payments to 822 deceased students and over 14,000 ineligible high-income applicants between 2016-2021, totaling billions lost.
- Weak data verification with Home Affairs and SARS.
- Outdated ICT systems causing unresolved appeals (over 100,000 in 2026).
- Accommodation mismanagement, with unsafe private housing plaguing students.
For more on the Auditor-General findings, see the detailed report summary.
Photo by Hennie Stander on Unsplash
Previous Administrations: A Cycle of Failure?
Past interventions offered temporary relief but no lasting fixes. Carolissen's tenure (2018-2021) tackled corruption but left systemic gaps. Nomvalo's (2024-2025) period saw worsening delays and 'ghost bursaries.' Critics argue administrations treat symptoms, not root causes like policy flaws and capacity shortages.
Prof Hlengani Mathebula: The New Steward
Appointed administrator, Mathebula brings 30+ years in governance. A professor at Tshwane University of Technology's Business School, he has served at SARB, SARS (precautionary suspension in 2019), Shoprite board, and MDDA chair. His mandate: Stabilize operations, fix audits, modernize ICT, resolve backlogs, and prepare for new board.
Background details available in this profile.
Stakeholder Perspectives: A Divided Response
Universities South Africa (USAf): Welcomes continuity assurances but urges systemic reform beyond short-term fixes. Full statement here.
Unions like NEHAWU decry the 'repeated cycle of failure.' Board seeks court interdict. Students fear disruptions; opposition alleges capture.
Ripple Effects on Students and Institutions
Delays have forced universities like Cape Peninsula University of Technology (CPUT) and Durban University of Technology (DUT) to house students in gyms. TVET colleges report similar woes, with R621 million disbursed in April 2026 alone amid backlogs.
Over 1.2 million beneficiaries face uncertainty, exacerbating dropout risks in a sector where access hinges on aid.
Protests Erupt: Campuses in Turmoil
Funding delays sparked protests at DUT (5,000+ affected), CPUT, UCT, and TUT. Students blocked roads, demanding direct payments. Disruptions halted lectures, highlighting NSFAS's role in campus stability.
Photo by Sibusiso Mbatha on Unsplash
Towards Sustainable Solutions
Manamela emphasizes continuity, but experts call for:
- Integrated verification systems.
- Policy review for sustainability.
- Capacity building at TVETs/unis.
- Decentralized payments to institutions.
USAf pushes for comprehensive overhaul to break the crisis cycle.
Outlook: Stability or More Chaos?
Mathebula's tenure offers hope, but success depends on addressing root causes. With elections looming and youth unemployment at 45%, NSFAS reform is pivotal for South Africa's higher education future. Stakeholders must unite for equitable, efficient funding.