Unions slam minister over decision to put NSFAS under administration
The decision to place NSFAS under administration has drawn criticism from unions and student bodies.
Black News 
Higher Education Minister Buti Manamela’s decision to place the National Student Financial Aid Scheme (NSFAS) under administration has been met with criticism from student bodies, opposition parties, labour unions and civil society organisations.
Manamela has defended the move, saying it is necessary to ensure the long-term sustainability of the financial aid scheme.
He has appointed Hlengani Mathebula as administrator.
Labour union NEHAWU says previous administrations led to maladministration and financial irregularities.
NEHAWU National Spokesperson Lwazi Nkolonzi says, “We refer to the Auditor General’s reports culminating from the 2018-2019 financial year. When you look at those auditor reports from 2018-2019, that’s when NSFAS was under administration up until the current moment. And currently, there is actually an investigation by the SIU about those billions that were wasted and found to have been an irregular expenditure by the institution under the administrators”.
The union has also criticised the decision as lacking consultation.
NEHAWU not impressed by Manamela’s decision to place NSFAS under administration without consultation:
NEHAWU says it would have shared its experiences with previous administrators had it been engaged before the decision was taken.
Nkolonzi says, “Indeed, the (NSFAS) Act does not specifically say that a union consultation. However, we are relying on the provisions of the (NSFAS) Act that are coupled with what the Constitution says and the Labour Relations Act says. Section 95 of the Constitution requires public administration to be accountable and transparent. And so, hence, we are saying, as NEHAWU, that the minister ought to have consulted.”
The union says it views the decision as concerning, given past challenges within the scheme.
While Section 195 of the Constitution requires public administration to be accountable and transparent, the NSFAS Act allows the minister to appoint an administrator without specifying consultation with unions.
The Minister of Higher Education and Training, Mr @ButiManamela’s media briefing on developments at the National Student Financial Aid Scheme. pic.twitter.com/3R0PzeVZSN
— HigherEducationZA (@HigherEduGovZA) May 4, 2026
