South Africa Court Suspends NSFAS Administrator, Restores Board Contro

A Major Legal Blow to the Minister’s Intervention

South Africa’s High Court in Pretoria has suspended the appointment of National Student Financial Aid Scheme (NSFAS) administrator Prof Hlengani Mathebula, ordering the scheme’s seven remaining board members to resume control of the R54-billion fund while a full legal challenge is heard — a significant judicial rebuke of Higher Education Minister Buti Manamela‘s decision to dissolve the board and place NSFAS under administration on 4 May 2026.

The case was brought by the NSFAS board itself, which dragged the minister to court after he invoked section 17A(1)(b) of the NSFAS Act to dissolve its membership and install Mathebula as administrator, citing non-compliance with the Act’s composition requirements — specifically, three vacant student-nominated positions and a missing nominee from the finance minister.

At stake is the financial lifeline of more than 800,000 students across South Africa, a figure the court explicitly cited in declaring the matter urgent.

The Judge’s Findings: A Damning Assessment

Judge Etienne Labuschagne ruled on Friday that the board had demonstrated a strong prima facie case that its review of Mathebula’s appointment was likely to succeed, identifying two critical failures on the minister’s part: he had not properly considered adverse findings against Mathebula by the Nugent Commission of Inquiry into SARS, and he had not meaningfully consulted the board before acting.

The Nugent Commission findings were central to the board’s objections. Judge Labuschagne stated plainly that placing an administrator in charge of NSFAS “whose response to corruption is questionable does not augur well,” noting that Mathebula appeared indifferent to privacy rights violations and had, on the contrary, “turned a blind eye to allegations of corruption within SARS.” These are not minor procedural concerns — they go to the heart of whether the right person was ever put in charge of a fund designed to serve the country’s most financially vulnerable students.

The court also found that individual board members had been given a mere 48-hour deadline to respond to the proposed administration notice, with requests for an oral hearing or a group meeting flatly refused — a process the court found procedurally inadequate.

What the Court Ordered

As an interim measure, Judge Labuschagne suspended Mathebula’s appointment with immediate effect, reinstated the seven remaining board members to govern and administer NSFAS, and ordered an expedited hearing of the full review application before the end of November. Minister Manamela was also ordered to pay the costs of the urgent application.

The judgment reads: “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 by the first respondent on 4 May 2026 is suspended pending finalisation of Part B.” The board members are “authorised and directed to continue in the management, governance and administration of the NSFAS” until the final determination of that review.

Part B of the proceedings will determine whether the minister’s original decision to appoint Mathebula should be set aside entirely.

A Troubled Three Months Under Administration

Mathebula’s brief tenure as administrator had already attracted significant controversy, with reports of expensive hotel bookings and questionable adviser appointments drawing parliamentary scrutiny — adding further weight to the board’s argument that the intervention had destabilised rather than protected the scheme.

The NSFAS board welcomed the ruling, describing it as “an important opportunity to restore stability within the institution.” In a statement, the board said it would “resume its duties with immediate effect” and focus on “stabilising the institution, strengthening governance, and fulfilling its statutory mandate.” It also signalled that it would investigate concerns that emerged during the administration period, and that any wrongdoing uncovered would be met with appropriate action.

Minister Manamela, for his part, said he was giving the judgment “urgent consideration.” The final word on this legal battle, however, will not come before November.