UPDATE | NSFAS administrator responds to court judgment suspending his appointment | News24

Professor Hlengani Mathebula, the administrator of the National Student Financial Scheme (NSFAS), has requested his lawyers to guide him on “the best cause of action as far as his rights are concerned”.

This follows Friday’s judgment in the Gauteng High Court in Pretoria, which suspended his appointment as administrator, pending the finalisation of an application to have it set aside.

The application was brought by seven former NSFAS board members who alleged in court papers that Higher Education Minister Buti Manamela’s decision to appoint an administrator on 4 May and to dissolve the board on the same day “appears to be motivated by an ulterior motive”.

Judge Etienne Labuschagne directed the applicants to continue managing and governing NSFAS, pending the finalisation of the application.

Welcoming the judgment, the seven board members, who brought the application, said in a statement that they also welcomed the opportunity to resume the governance responsibilities of NSFAS, while noting that Part B of the application, which concerns the review and setting aside of the appointment of the administrator, remained to be determined by the court.

“The NSFAS board will resume its duties with immediate effect and will focus on stabilising the institution, strengthening governance, and fulfilling its statutory mandate to provide financial assistance to eligible students across South Africa.”

They stated that the board had noted the various concerns and issues that have emerged in the public domain regarding the institution and would attend to these matters as a priority.

“Where any wrongdoing, misconduct or unlawful conduct is identified, appropriate action will be taken in accordance with the law and applicable governance processes.

“The board further reaffirms its commitment to working constructively with the minister of higher education and training and all relevant stakeholders in addressing the challenges facing NSFAS and the broader higher education sector.”

The Portfolio Committee on Higher Education welcomed the “scathing” judgment on the department’s decision to appoint an administrator without consulting the board.

READ | Ex-SARS head explained Nugent commission criticism before I hired him at NSFAS – Manamela

“As the committee, we note that the minister has released a statement indicating that he’s studying the judgment, and he will advise on the way forward. We shall await the minister’s determination.”

The committee stated that it hoped the department “will not move to appeal the decision of the court as it is almost impossible to overturn an interim judgement”.

Labuschagne was scathing of Mathebula, who was the former chief officer for strategy at the SA Revenue Service (SARS), saying the criticism against him “raises concerns regarding his integrity”.

News24 previously reported that the Nugent Commission criticised Mathebula for approving requests to download emails from the SARS server, including those of people who did not work for the organisation, without determining whether the requests were lawful, whether they violated their privacy, or whether they breached his duties as a senior manager.

He also signed memoranda supporting the tobacco task team’s investigations into SARS investigators, approving steps that led to suspensions and disciplinary proceedings for what turned out to be made-up charges.

However, in his affidavit, Manamela was adamant that while the Nugent Commission devoted eight pages to criticising Mathebula’s role in the capture of SARS, it had made no adverse findings against him.

Manamela added that, since 2018, President Cyril Ramaphosa had ratified Mathebula’s appointments to state entities on two occasions and that the applicants’ attack against Mathebula was “without merit”.

Labuschagne stated in his judgment that Manamela contended that he was provided with context on the criticisms by Mathebula, which were made seven years ago, and he was satisfied.

“If the suggestion is that the mere passing of time can cure failings of character, this must be rejected outright.

“As administrator, Professor Mathebula now administers a fund of R54 billion. NSFAS has been plagued for years by poor audit outcomes from the Auditor-General.

“To place an administrator in charge of NSFAS whose response to corruption is questionable and who has a poor track record in a position of trust at SARS does not augur well. It cannot be in the interests of NSFAS to be governed by such an administrator.”

Labuschagne said the criticism of Mathebula raised concerns regarding his integrity.

“The adverse findings of the Nugent Commission are relevant to the appointment [as administrator]. The minister’s contention that he was apprised of the criticism and the context does little to allay concerns.”

He said Manamela should have consulted the board about the criticisms against Mathebula.

“And his acceptance of an exculpatory explanation by Mathebula in the face of the strong adverse character findings is irrational. The explanation Mathebula offered to the minister has not been disclosed to the court or the applicants.

“The minister’s failure to give the board a hearing on his appointability and his failure to take into account, or properly to take into account, the adverse findings of the Nugent Commission render the appointment procedurally and substantively irrational.”

Labuschagne added that Manamela failed to consider relevant considerations adversely impacting Mathebula as a candidate for appointment as administrator.

“I am therefore satisfied that the applicants have a strong case on review that is likely to succeed.”

Labuschagne said the applicants also contended that Mathebula’s appointment was motivated by an ulterior purpose, namely, to prevent the board from discharging its role and functions under the NSFAS Act, particularly in appointing a CEO.

On 29 April, the board unanimously resolved to appoint Waseem Carrim, who had been acting as CEO since 1 February 2025.

They wrote to Manamela requesting his concurrence on the conditions of service for Carrim, but did not receive a response.

READ | Ex-SARS executive tapped to fix NSFAS has his own governance questions to answer

Labuschagne ordered Manamela to pay the costs of both counsel.

Manamela’s office said in a statement that he had noted the judgment and sought legal advice on its implications, including available legal remedies and appropriate steps to take.

“In the meantime, the department will take all necessary steps to ensure the continued effective functioning of NSFAS and, above all, that there is no disruption to student funding and other critical NSFAS functions.”

The statement said that Manamela respected the court’s authority and would communicate further once the judgment and the available legal options had been fully considered.

News24’s free audiobook for subscribers this month is Wisani and the Bafokeng Brothers by Thandi Moagi.

From Babita Deokaran to Mpho Mafole, whistleblowers remain at the forefront of News24’s intensive investigative work.

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.