NSFAS board dissolution: OUTA raises concerns over governance crisis

The Organisation Undoing Tax Abuse (OUTA) has raised concerns over the governance crisis at the National Student Financial Aid Scheme (NSFAS) following the recent dissolution of its board. This crisis was not an abrupt development, but rather a gradual erosion of the scheme's governance and institutional safeguards. On May 4, Higher Education and Training Minister Buti Manamela dissolved the NSFAS board and appointed Hlengani Mathebula as administrator, a move that OUTA disputes.

The court's ruling to suspend Mathebula's appointment and restore the board members pending a final hearing highlights the legitimacy of OUTA's concerns. Mathebula's background at the South African Revenue Service and adverse findings from the Nugent Commission have been questioned by OUTA, who argue that his appointment raises serious red flags regarding his integrity and conduct.

The scheme's systemic issues are further evidenced by its numerous audit findings and overdue internal audits. OUTA's CEO, Wayne Duvenage, asserts that the situation could have been addressed earlier, and that Manamela's handling of the crisis was a lack of timely action. The Minister has defended his decision, claiming it was necessary for the scheme's stabilization, but OUTA contends that the board dissolution and appointment of an administrator were ill-judged and lacking in proper governance.

This case is part of a broader set of disputes between OUTA and Manamela, including the reappointment of Gugu Mkhize as CEO of the Insurance Sector Education and Training Authority. The EFF has also launched a legal challenge against Mkhize's reappointment. OUTA has called on President Cyril Ramaphosa to consider removing Manamela from office, emphasizing the need for leadership in the portfolio following the High Court's suspension of his choice of administrator at NSFAS.

These events collectively point to serious questions about Manamela's judgment and ability to lead the Ministry effectively.