NSFAS Board Restored as Court Blocks Administrator Appointment, Reviving Governance Disput

A Pretoria High Court ruling on Friday suspended the appointment of Professor Hlengani Mathebula as NSFAS administrator and reinstated the National Student Financial Aid Scheme’s board, handing the student funding entity’s governance back to the body that Minister Buti Manamela had dissolved in May.

The interim relief allows the board to resume operational control while the substantive legal challenge proceeds. At stake is the legality of three ministerial decisions taken in May: the dissolution of the board, the placement of NSFAS under administration, and Mathebula’s appointment to lead the scheme during that period. Part B of the board’s review application, which targets Mathebula’s appointment specifically, remains before the court for final determination.

The board welcomed the ruling and said it would immediately resume governance responsibilities. Its statement framed the interim relief as an opportunity to stabilize NSFAS operations and strengthen institutional structures while the broader legal dispute works through the courts.

What changed, at least for now, is who controls the funding flows and operational decisions of one of South Africa’s largest student financing vehicles. The board’s reinstatement displaces an administrator who had been installed by executive action, and the court’s willingness to grant interim relief signals that the judge found sufficient merit in the board’s arguments to justify suspending that arrangement pending final judgment.

The board acknowledged publicly that concerns about NSFAS have surfaced and committed to treating them as priority matters. Where wrongdoing, misconduct, or unlawful conduct is identified, it said, appropriate action will follow in line with legal requirements and applicable governance processes. That language points toward internal reviews and corrective measures as part of the board’s resumed mandate.

Despite the litigation, the board indicated it intends to maintain constructive engagement with Manamela and other stakeholders on challenges facing NSFAS and the broader higher education sector. It also said it would not comment further on the case while Part B remains outstanding, a posture that keeps the legal arguments out of the public domain for now.

The financial and operational consequences of the transition back to board control are not yet clear. NSFAS has faced well-documented governance difficulties, and the board’s own statement acknowledges institutional problems that require attention. The interim ruling restores a structure, but it does not resolve the underlying question of whether the minister’s original decisions were lawful.

That question falls to the court in Part B proceedings, the outcome of which will determine whether the board’s reinstatement becomes permanent or whether the administrator’s role is ultimately restored.