The minister said the court order had not resolved the underlying institutional problems at Nsfas
Higher Education and Training Minister Buti Manamela has warned that the challenges facing the National Student Financial Aid Scheme (Nsfas) will not disappear following an interim court order that changed the scheme’s governance arrangements.
Manamela made the remarks on Thursday during a meeting with Nsfas board members in Gauteng, as the scheme prepares to transition from administration to interim arrangements contemplated by a court order issued on 14 August.
The minister said the meeting would focus on the implementation of the order, institutional continuity and the functioning of Nsfas in the period ahead.
Manamela said the difficulties that prompted him to place Nsfas under administration had developed over time and involved serious institutional, governance, financial and operational challenges.
“As we move forward, we must also be honest about the circumstances that brought us to this point,” he said.
“The challenges that led to my intervention to place Nsfas under administration did not arise overnight.”
He said concerns about the scheme had also emerged through oversight and accountability processes, “including the recent findings and recommendations of the Public Protector”.
He called for the findings to receive serious consideration and appropriate follow-up within the respective mandates of those involved.
“The concerns identified through these processes cannot simply be wished away,” he said.
Manamela said the court order had altered the interim governance arrangements but had not resolved the underlying institutional problems confronting the scheme.
“The interim Court order has changed the interim governance arrangements, but it does not make the underlying institutional challenges disappear,” he said.
He said the priority should instead be to strengthen Nsfas’ systems, controls and governance arrangements.
The minister highlighted several matters requiring urgent attention, including the financial position of the scheme, payments owed to institutions, student funding decisions, operational systems and audit remediation.
“There are significant questions concerning the financial position of Nsfas and amounts owing to institutions,” Manamela said.
He added that the scheme must already be preparing for the 2027 academic year.
Manamela said the meeting was not intended to revisit the litigation surrounding Nsfas, with the pending legal proceedings expected to follow their appropriate course.
He acknowledged that not every issue would be resolved during the meeting but said the board needed to establish a clear understanding of the scheme’s current position and agree on a credible way forward.
“We do not need to resolve every issue in this room today,” Manamela said.
“What we do need to achieve is a clear understanding of the current position and a credible way forward.”
