Higher Education and Training Minister Buti Manamela has been ordered to reinstate the remaining seven members of the National Student Financial Aid Scheme (NSFAS) board after the Pretoria High Court suspended his appointment of an administrator to oversee the R54-billion student funding scheme.
The Gauteng Division of the High Court on Friday granted interim relief suspending the appointment of Professor Hlengani Mathebula as NSFAS administrator, pending the finalisation of a review application challenging Manamela’s decision to dissolve the board and place the scheme under administration.
The court further directed the former board members to resume the management, governance and administration of NSFAS in the interim.
The judgment follows a legal challenge brought by members of the dissolved NSFAS board against Manamela’s decision to place the scheme under administration on 4 May 2026 and appoint Mathebula under section 17A(1)(b) of the NSFAS Act.
In his judgment, Judge Etienne Christoffel Labuschagne ordered the immediate reinstatement of the remaining seven board members pending the final determination of Part B of the review application, which is expected later this year.
“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,” Labuschagne said.
The judgment also raised concerns about the process followed by Manamela in appointing Mathebula, particularly his failure to disclose the identity of the proposed administrator to the NSFAS board during consultations.
Labuschagne found that the circumstances required the minister to disclose the identity of the person he intended to appoint for meaningful consultation with the board.
“As the appointment of this particular administrator was a foreseeable controversy, due to the adverse findings by the Nugent Commission, I find that the duty to consult with the board did, on these facts and in this instance, require the identity of the administrator to be disclosed for purposes of consultation,” the judge said.
The court also questioned Mathebula’s suitability to oversee NSFAS, citing concerns arising from previous findings against him.
“To place an administrator in charge of the NSFAS whose response to corruption is questionable, and who has a poor track record in a position of trust at SARS [South African Revenue Service], does not augur well. It cannot be in the interests of NSFAS to be governed by such an administrator,” Labuschagne said.
Mathebula’s three-month tenure as administrator had come under scrutiny, including over expensive hotel bookings and the appointment of advisers, with the issues also attracting attention in Parliament.
The NSFAS board welcomed the judgment, saying it would resume its governance responsibilities with immediate effect and focus on stabilising the institution and strengthening governance.
The board said it would also prioritise concerns that had emerged about the institution, adding that any wrongdoing, misconduct or unlawful conduct identified would be dealt with in accordance with the law and applicable governance processes.
It reaffirmed its commitment to working with Manamela and other stakeholders to address challenges facing NSFAS and the broader higher education sector. However, the board said it would not comment further on the matter while Part B of the court proceedings remained pending.
Manamela however has since said he is urgently considering the judgment and has sought legal advice on its implications and possible legal remedies.
“The Minister is giving the judgment urgent consideration and has sought legal advice on its implications, including the available legal remedies and the appropriate steps to be taken,” his ministry said in a statement.
Despite the court-ordered changes to NSFAS’s governance, the minister said the department would take steps to ensure that the scheme continues to function effectively.
“In the meantime, the department will take all necessary steps to ensure the continued effective functioning of NSFAS and, above all, that there is no disruption to student funding and other critical NSFAS functions,” the statement said.
The court order does not constitute a final determination of the broader dispute, with the review application still to be heard.
Manamela said he respected the authority of the court and would communicate further once the judgment and available legal options had been fully considered.
