NSFAS administrator responds to suspended appointment ruling after the Gauteng High Court in Pretoria suspended Professor Hlengani Mathebula’s appointment as administrator of the National Student Financial Aid Scheme (NSFAS).

The ruling has created another major development in the ongoing governance crisis at the student funding agency, with the court also directing the reinstated NSFAS board members to resume their management and governance responsibilities.

Mathebula, who was appointed by Higher Education Minister Buti Manamela on 4 May after the dissolution of the NSFAS board, has indicated that he is considering his next steps following the judgment.

In a brief response, Mathebula said he had confidence in the South African judiciary and had asked his lawyers to advise him on the best course of action regarding his rights.

NSFAS administrator responds to court ruling

The NSFAS administrator, Professor Hlengani Mathebula, has kept his response to the judgment brief while his legal team considers the implications of the ruling.

The Gauteng High Court in Pretoria suspended his appointment pending the finalisation of an application brought by seven former NSFAS board members seeking to have his appointment reviewed and set aside.

Mathebula said he was confident in the country’s judiciary but declined to comment further while he considered his options.

His appointment had followed Manamela’s decision to dissolve the NSFAS board and place the institution under administration.

The seven board members challenged the minister’s decision, arguing that the process surrounding the dissolution of the board and appointment of an administrator was unlawful and potentially motivated by an ulterior purpose.

The court’s decision means the dispute over the future leadership of NSFAS remains unresolved.

Hlengani Mathebula appointment faces legal challenge

The Hlengani Mathebula appointment became the centre of the legal dispute after the minister selected him to oversee NSFAS.

The court raised serious concerns about issues surrounding Mathebula’s previous work at the South African Revenue Service (SARS), particularly matters examined by the Nugent Commission.

Judge Etienne Labuschagne said the concerns raised about Mathebula’s previous conduct were relevant to assessing whether he was suitable for a position involving responsibility for NSFAS.

NSFAS manages billions of rands in student financial assistance and plays a critical role in helping eligible students attend universities and TVET colleges.

The judge questioned whether sufficient consideration had been given to the criticisms involving Mathebula before the appointment was made.

The court also found that the minister’s handling of the matter raised questions about procedural fairness and whether all relevant considerations had been properly taken into account.

According to the judgment, the minister should have consulted the NSFAS board about the concerns surrounding Mathebula’s suitability.

The court further found that the minister’s acceptance of Mathebula’s explanation without properly addressing the adverse findings raised concerns about the rationality of the appointment.

Buti Manamela defends NSFAS intervention

Buti Manamela has defended his decision to intervene at NSFAS and appoint an administrator.

The minister argued that the composition of the NSFAS board did not comply with the requirements of the NSFAS Act.

Manamela also disputed the characterisation of the findings concerning Mathebula’s previous work at SARS.

According to the information presented to the court, Manamela argued that although the Nugent Commission had criticised Mathebula’s role during the period of state capture at SARS, the commission had not made adverse findings against him personally in the manner alleged by the applicants.

The minister also pointed to Mathebula’s previous appointments to state entities as evidence that he had continued to receive government confidence.

However, the court was not persuaded that the passage of time or previous appointments adequately resolved the concerns surrounding his suitability.

The judgment therefore represents a significant setback for the minister’s intervention at NSFAS.

Manamela’s office said he had noted the judgment and was seeking legal advice about its implications and possible legal remedies.

The department also stressed that it would take steps to ensure that NSFAS continued operating effectively and that student funding was not disrupted.

NSFAS board returns to governance

The court judgment has also paved the way for the seven former board members to resume their responsibilities.

The NSFAS board welcomed the ruling and said its members would return to their governance duties immediately.

Board said its immediate priorities would include stabilising NSFAS, improving governance and ensuring that the institution continued fulfilling its statutory mandate.

The board also acknowledged concerns that had emerged around NSFAS and said any wrongdoing or unlawful conduct identified would be dealt with through appropriate legal and governance processes.

The board said it remained committed to working with the minister and other stakeholders to address challenges facing NSFAS and the wider higher education sector.

This development could now lead to renewed discussions about the agency’s leadership structure and the future of its administration.

Court judgment raises questions about NSFAS governance

The court judgment comes at a time when NSFAS is already facing significant pressure over governance, financial management and the administration of student funding.

NSFAS is responsible for providing financial assistance to qualifying students from poor and working-class households.

Any prolonged uncertainty over its leadership could therefore have consequences for universities, TVET colleges and students who depend on funding for tuition, accommodation, allowances and other expenses.

The Portfolio Committee on Higher Education welcomed the judgment and described it as significant.

The committee also indicated that it hoped the Department of Higher Education and Training would carefully consider the court’s findings before deciding whether to pursue an appeal.

The court’s decision does not necessarily bring the wider dispute to an end. The application to permanently review and set aside Mathebula’s appointment still needs to be finalised.

This means further legal proceedings could determine whether Mathebula ultimately remains in the position or whether the NSFAS board retains responsibility for running the institution.

Higher Education South Africa watches NSFAS developments

The developments are being closely watched across Higher Education South Africa, given the importance of NSFAS to the country’s tertiary education system.

NSFAS has faced years of criticism over administrative challenges, funding decisions, governance problems and audit concerns.

The latest legal dispute adds another layer to those challenges.

For students, however, the immediate concern is whether the leadership battle will affect their funding.

Manamela’s department has stated that protecting student funding remains a priority and that it will work to ensure there is no disruption to critical NSFAS functions.

The returning board has similarly promised to focus on stabilising the organisation.

The court has therefore placed the spotlight firmly on the need for effective governance while the broader legal dispute continues.

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What happens next at NSFAS?

The next stage will depend largely on the legal advice received by Manamela and the outcome of the remaining court proceedings.

The minister could consider available legal remedies, while the seven board members will resume their governance responsibilities in the interim.

Mathebula, meanwhile, is expected to rely on his legal advisers to determine the appropriate response to the judgment.

The dispute could ultimately determine whether NSFAS continues under its previous board structure or whether a different administrative arrangement is introduced.

For now, the NSFAS administrator responds to suspended appointment ruling with a cautious statement of confidence in the judiciary, while the reinstated board prepares to resume its duties.

The situation highlights the continuing importance of transparent governance, accountability and sound financial management at an institution responsible for supporting hundreds of thousands of South African students.