PRETORIA, Gauteng — A pivotal NSFAS board reinstatement has been ordered by the Pretoria High Court, delivering a major legal blow to Higher Education Minister Buti Manamela’s attempt to dissolve the student financial aid scheme’s leadership. The interim ruling not only restores the governing body but also suspends the controversial appointment of Hlengani Mathebula as the entity’s administrator, setting the stage for a broader judicial review of the department’s executive decisions.
The court’s decision was handed down as part of “Part A” of a comprehensive review application, granting the board interim relief to resume its duties with immediate effect. A subsequent “Part B” of the application will determine whether the administrator’s appointment is permanently set aside. Following the judgment, the reinstated board announced its immediate focus will be on stabilizing the institution, fortifying corporate governance, and treating public concerns regarding the entity as a top priority. The board affirmed that any identified wrongdoing or unlawful conduct will be addressed strictly in accordance with the law.
Organisation Undoing Tax Abuse (OUTA) CEO Wayne Duvenage welcomed the ruling, commending the seven board members for their courageous legal challenge against the dissolution. According to Duvenage, the Minister’s decision to disband the board was fundamentally flawed and unlawful. He argued that the Minister failed to consult properly and falsely labeled the board as inquorate. Duvenage pointed out that the board only lost its quorum because the Minister deliberately ignored his duty to fill critical subcommittee vacancies that had been piling up since November and December of the previous year.
While the primary legal victory centers on the unlawfulness of the Minister’s dissolution, the suspension of Hlengani Mathebula addresses secondary but severe concerns raised by civil society. Questions were brought before the court regarding Mathebula’s past tenure at SARS and findings that emerged from the Nugent Commission. However, Duvenage emphasized that the core issue remains the Minister’s failure to follow proper administrative procedures and his tendency to leave crucial appointments to the last minute—a pattern OUTA notes is also evident in various Sector Education and Training Authorities (SETAs).
Tensions between the board and the Minister have been simmering for months, with the board alleging that Manamela acted with ulterior motives to block the appointment of a permanent CEO. Duvenage described this as a textbook example of political interference, suggesting that controlling executive appointments is a common tactic used to manipulate financial flows within state entities. Pointing to broader governance failures across the higher education portfolio, including questionable appointments like the INCA CEO—which the EFF is currently challenging in court—Duvenage stated that the Minister’s ongoing maladministration proves he is unfit for his role and officially called for his removal.
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 reassured the public that administrative rectifications initiated under former chairperson Dr. Karen Stund—who resigned late last year citing a toxic environment—and currently managed by Acting CEO Wasim Karim have successfully stabilized payout processes. Karim, the entity’s former CFO, is widely supported by OUTA to be confirmed as the permanent CEO. Notably, before its unlawful dissolution on April 29, the board had already resolved to appoint Karim to the permanent role.
Addressing public discourse on fixing the entity, Duvenage responded to a recent public poll in which 41% of citizens favored direct cash payments to students. He strongly advised against this model, warning that it bypasses necessary institutional oversight. Instead, he advocated for strong, independent board leadership and direct funding to educational institutions, allowing the universities and colleges to manage student accommodation themselves. He argued that NSFAS stretches itself too thin by attempting to manage accommodation administration, which falls outside its core skill set.
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 to illustrate the systemic damage caused by such interference, specifically noting how former minister Blade Nzimande was eventually forced to fire former CEO Andile Nongogo after immense public pressure. Nongogo had previously been found wanting at state IT agencies, yet his appointment was initially pushed through. Moving forward, the reinstated board’s immediate agenda is expected to focus on appointing a new chairperson, finalizing executive leadership, and operating independently to restore the scheme’s integrity.
