Staff Reporter

Higher Education and Training Minister Buti Manamela has told the reinstated National Student Financial Aid Scheme (NSFAS) board that the court ruling that ended the scheme’s administration has not resolved the financial, governance and operational problems that prompted his intervention.

Manamela met board members in Gauteng on Thursday, less than two weeks after the Gauteng High Court in Pretoria suspended the appointment of NSFAS administrator Professor Hlengani Mathebula and ordered the remaining seven board members to resume control of the scheme.

The meeting comes as NSFAS grapples with billions of rand owed to universities, unresolved student funding matters, serious audit deficiencies and preparations for the 2027 academic year.

“There are significant questions concerning the financial position of NSFAS and amounts owing to institutions. There are also matters concerning student funding decisions, operational systems, audit remediation and the preparations that must already be underway for the 2027 academic year,” Manamela told the board.

Parliament’s Portfolio Committee on Higher Education and Training was told last week that NSFAS had paid 61.5% of university allocations and 59.2% of TVET college allocations, with about R10.49 billion in 2026 tuition still owed to universities.

The financial pressure forms part of a wider crisis at the student funding body, which Manamela placed under administration on 4 May after dissolving its board and appointing Mathebula as administrator.

The department said at the time that the intervention followed governance instability, operational failures, financial weaknesses, unresolved appeals, ICT deficiencies, accommodation problems and accountability concerns.

But seven remaining board members challenged the decision in court.

On 14 August, Judge Etienne Labuschagne suspended Mathebula’s appointment pending the final determination of the board’s review application and directed the board members to resume managing and governing NSFAS.

The court raised concerns about the process followed in making the appointment and Mathebula’s suitability, including criticism of his conduct while previously employed at the South African Revenue Service. The main review application — Part B — is expected to be dealt with on an expedited basis.

Manamela made clear on Thursday that he did not intend to use the meeting to re-litigate that dispute.

“Let me state clearly that the intention is not to revisit the litigation today. The pending proceedings will follow their appropriate legal course. Today’s discussion is about the functioning of NSFAS in the period immediately ahead.”

He said the court’s intervention had altered who governed NSFAS in the interim, but had not resolved the problems facing the institution.

“The concerns identified through these processes cannot simply be wished away. The interim court order has changed the interim governance arrangements, but it does not make the underlying institutional challenges disappear. Our task therefore is not to pretend that nothing happened but rather to ensure that the systems, controls and governance arrangements of NSFAS are strengthened.”

In March, the Auditor-General issued NSFAS with a disclaimer of opinion for its 2024/25 financial statements — the most serious audit outcome — after finding deficiencies in its accounting records and supporting evidence. Nine material irregularities had been identified, including four that were newly reported.

Scrutiny continued this month when Public Protector Kholeka Gcaleka reported systemic deficiencies in NSFAS’s governance, administration, funding coordination and oversight.

The Public Protector’s investigation described persistent governance instability, administrative weaknesses and inadequate systems. It also referred to findings from a Special Investigating Unit investigation showing that more than 40,000 students at 76 higher education institutions had been improperly funded to an estimated value of R5.1 billion.

The investigation also highlighted delays in NSFAS’s Close-Out Project, which was established to reconcile payments and financial records between the scheme and higher education institutions. Those unresolved reconciliations have affected students whose qualifications have in some cases been withheld because accounts remain outstanding.

The reinstated NSFAS board has said the Public Protector’s investigation was initiated in 2021 and largely dealt with a period predating its appointment. It has nevertheless undertaken to implement the recommendations and said it accepted responsibility for addressing the systemic weaknesses identified.

Before the court ruling, Mathebula had submitted a stabilisation plan to Manamela setting out proposed interventions intended to strengthen NSFAS’s governance, financial management and operations.

Manamela told board members that the circumstances which led him to intervene had developed over a prolonged period.

“The challenges that led to my intervention to place NSFAS under administration did not arise overnight. They resulted from serious institutional, governance, financial and operational challenges that developed over time.”

He said NSFAS now needed to maintain institutional continuity while dealing with payments to institutions, student funding administration, audit remediation, operational systems and planning for next year.

“We do not need to resolve every issue in this room today. What we do need to achieve is a clear understanding of the current position and a credible way forward.”

INSIDE EDUCATION

The post Manamela tells reinstated NSFAS board that funding crisis remains despite court ruling appeared first on Inside Education..

By Thapelo Molefe

The Special Investigating Unit (SIU) has uncovered a string of irregularities involving millions of rands meant to fund training and skills development, including money paid for training that never happened, duplicate invoices and funds transferred between companies linked to project directors.

The findings, presented to Parliament’s Portfolio Committee on Higher Education and Training on Wednesday, involve the National Skills Fund (NSF), several TVET colleges and the Vaal University of Technology (VUT).

One of the most serious cases involves Rubicon Communication, which was appointed to train learners in clothing, textile, footwear and leather manufacturing.

The project was approved for R4.1 million, with an initial payment of about R2.7 million made to the company.

But the SIU found that the money was transferred into personal accounts and depleted within two weeks.

It also found that no students were trained and that no new equipment was bought for the programme.

“Unfortunately, no training was done,” SIU Forensic investigation specialist Paul Bulwana told MPs.

He said the SIU had already submitted a criminal referral to the National Prosecuting Authority (NPA) and disciplinary referrals against officials responsible for monitoring the contract.

The company has also entered into an agreement to repay the money, with the SIU pursuing civil recovery. 

The investigation has also exposed concerns at Ingwe TVET College involving Ada Holdings in the Eastern Cape, where a project approved for R187 million was meant to help turn around the college and support artisan development in the Lusikisiki and Bizana areas.

The SIU found that the service provider did not train learners despite receiving payment and also failed to construct training facilities according to the required specifications. 

Financial analysis found that ADA Holdings received R132.98 million from the National Skills Fund.

The investigation further found that substantial amounts were transferred to companies in which the director of ADA was also a member. These included R52.49 million paid to Artisan Development, R45.03 million to Umbani and R7.39 million to PWC Institute.

Bulwana told MPs that the financial movements were being investigated to establish why the money was transferred between the companies.

He said the investigation had found that more than R105 million had been transferred among ADA Holdings’ parent companies, while some lecturers involved in the project claimed they had not received certificates for training that had supposedly been conducted.

The SIU also found that the training facilities at the Ingwe TVET College campuses were incomplete, despite money having been paid for their construction.

“Unfortunately, the buildings were not completed, but money has been paid,” he told the committee.

Equipment supplied to the colleges was also allegedly not in line with the required specifications.

Bulwana said the SIU had appointed a quantity surveyor to assess how much had actually been spent on the buildings.

The SIU plans to use the findings to determine the appropriate amount to recover and has indicated that the matter could be taken to the Special Tribunal for what it described as just and equitable relief.

The investigation remains ongoing.  

The SIU has also raised concerns about a R39.6 million rabbit farming project in KwaZulu-Natal (KZN) that was supposed to benefit 250 learners.

Investigators found that money had been transferred into personal accounts; only 43 learners were reported as having been trained and site visits did not find the number of rabbits that had been invoiced.

The company that was supposed to purchase the rabbits was liquidated before delivery.

Bulwana told MPs that investigators even visited the community where the project was supposed to operate.

“Unfortunately, no rabbits were then bred in KZN,” he said.

The SIU said it planned to approach the Special Tribunal to have the contract set aside. 

At the Port Elizabeth TVET College dual-system apprenticeship project, which was intended to train 50 learners in plumbing and electrical work over three years, the SIU found that the college received more than R16 million in two payments but did not submit the required close-out or quarterly reports.

Some students interviewed by investigators also said they had not received certificates for the training they attended. 

Another investigation involves Emanzini Staffing Solutions, which was contracted for a student placement programme intended to benefit 488 people in Gauteng, Limpopo and Mpumalanga.

The project was approved for R31.7 million, while R25.98 million was ultimately paid.

The SIU found that only 484 students were trained and that the company’s accreditation could not be confirmed.

It also found that R3.6 million could not be verified because invoices and monitoring reports had not been submitted.

The company’s director was also found to have transferred money into other accounts in breach of the agreement. 

At Ekurhuleni West TVET College, the SIU found duplicate requests for quotations and quotes that had been approved at different prices.

The SIU said this resulted in the college potentially paying for the same equipment twice.

“The procurement process was not followed,” the SIU found, adding that relevant documents submitted by suppliers were overlooked.

A disciplinary process has already been held at the college, with one official dismissed after refusing to participate in the payment of what was described as wasteful expenditure. 

The problems extend beyond the National Skills Fund projects.

At VUT, the SIU is investigating irregularities surrounding the refurbishment of student residences and campus security services.

The investigation found serious irregularities in the appointment of service providers for the residence refurbishment, including contractors who allegedly did not have the required accreditation.

The SIU has made five criminal referrals to the NPA, five disciplinary referrals and five administrative referrals to the Construction Industry Development Board. 

The SIU also intervened in a VUT security contract that had remained in place for years despite being awarded on an urgent basis.

The contract was eventually cancelled following the SIU’s intervention, saving the university R109 million.

The unit has also made 11 disciplinary referrals against former and current VUT officials in relation to the security investigation.

INSIDE EDUCATION

The post SIU uncovers millions in questionable skills funding across TVET colleges appeared first on Inside Education..

By Lebone Rodah Mosima

Learners currently enrolled in a National Skills Fund-funded aviation training programme are being required to temporarily return home after Flyfofa Aviation Training suspended training amid unresolved contractual and funding matters.

The NSF said on Sunday that concerns over the verification of training progress, supporting documentation for expenditure and compliance with the conditions of its funding agreement with Flyfofa had materially affected the continued implementation of the project.

“The NSF wishes to assure all affected learners and their families that it remains committed to supporting the successful completion of the learners’ aviation training and qualifications,” the fund said.

“At the same time, the NSF has a legal and fiduciary responsibility to ensure that public funds are managed responsibly, transparently, and in accordance with applicable legislation, financial regulations, and the terms of the funding agreement.”

In 2024, the NSF approved funding for an aviation training programme intended to benefit 390 learners over a 31-month period.

The NSF previously said R148 million had been approved for the Flyfofa programme, which covers Private Pilot Licence training, advanced pilot hour building, drone pilot and cabin crew training.

The 390 figure refers to the number of learners the programme was intended to benefit over its full duration.  

“Since implementation commenced in early 2025, the NSF has undertaken ongoing monitoring and verification of the programme, as required for all projects funded from public resources,” the NSF said.

“During this process, a number of material concerns and discrepancies were identified relating to project implementation, accreditation and aviation approval, reporting, expenditure, and the verification of certain training milestones.”

The NSF said it subsequently engaged Flyfofa on several occasions and requested explanations, supporting documentation and evidence to address the concerns.

It said the matters required careful assessment and due diligence, particularly where they related to the expenditure of public funds and whether payments could be supported by verified deliverables.

The NSF said concerns regarding the verification of training progress, supporting documentation for expenditure and compliance with the conditions of the funding agreement had materially affected the continued implementation of the project.

“The NSF wishes to clarify that the disruption of training did not result from a decision by the NSF to abandon learners or cancel their future training opportunities,” the NSF said.

“Flyfofa halted training during August 2026 amid unresolved contractual and funding matters, including requests that require further consideration through the appropriate governance processes.”

Acting Chief Executive Officer of the NSF Melissa Erra said the fund could not approve additional financial commitments or variations outside established procedures simply to speed up a decision.

“The NSF cannot approve additional financial commitments or variations outside established procedures simply to expedite a decision. Any such request must be properly assessed and subjected to the necessary governance and approval processes and the NSF has undertaken this with urgency to ensure student protection,” Erra said.

The NSF expressed regret over the distress and uncertainty caused to learners and their parents, particularly regarding accommodation and the continuation of their studies.

It said it had intervened after learners faced an immediate risk of eviction from accommodation provided through a third party appointed by Flyfofa.

The fund engaged relevant parties to prevent the immediate eviction of learners during August while internal processes relating to outstanding training matters were being addressed by Flyfofa.

Following Flyfofa’s continued suspension of training, the NSF said currently enrolled learners were required to return home temporarily while remedial and governance processes were undertaken and outstanding matters affecting the programme were resolved.

The fund said aviation industry requirements needed to be in place so that students could train safely and build flight hours.

The NSF has appointed an aviation expert to assess the programme’s progress to date and its suitability for the continuation of pilot training.

It said continuing to spend public funds on activities not linked to active and verifiable training would raise serious financial and governance concerns.

The NSF said it had a responsibility to prevent unauthorised, irregular, fruitless and wasteful expenditure.

“The decision to direct learners to vacate the accommodation by or before end of August 2026 is therefore intended to preserve available funding for the learners’ actual training and eventual completion of the programme.”

The NSF confirmed that learners had received their stipends up to the end of July 2026.

“Returning home temporarily does not mean that the NSF is withdrawing its commitment to their training. On the contrary, our priority remains to find a lawful, sustainable and financially responsible way of ensuring that learners are able to complete the training for which funding was originally approved in a manner that is compliant to the aviation sector standards for their safety and licences,” Erra said.

The NSF said it was continuing processes aimed at resolving the matters affecting the Flyfofa programme within the next 30 days.

These include considering outstanding contractual and compliance issues, verifying information and engaging relevant stakeholders to determine the most appropriate way forward.

The NSF said the outcome of the process and the programme’s readiness to resume training would be communicated to learners and other stakeholders once approved by its Accounting Authority.

“Any future decisions will be guided by the need to protect the interests and future of learners while ensuring full compliance with the NSF’s governance and financial management obligations,” the NSF said.

Flyfofa did not respond to requests for comment from Inside Education.

INSIDE EDUCATION

The post Flyfofa aviation learners sent home temporarily as NSF reviews funding, compliance issues appeared first on Inside Education..

By Charmaine Ndlela

Higher Education and Training Minister Buti Manamela has officially handed over fully equipped cellphone repair containers to 25 entrepreneurs in Sebokeng, as part of a R19 million programme aimed at turning technical skills into sustainable businesses and employment opportunities.

The handover ceremony took place at the Saul Tsotetsi Sports Complex on Monday and forms part of the Cellphone Repair Skills Programme, which seeks to equip 500 disadvantaged South Africans with practical cellphone repair skills and business opportunities.

The broader initiative provides for 50 fully equipped business containers, with the latest handover benefiting an additional 25 entrepreneurs.

The programme is being implemented by the Wholesale and Retail Sector Education and Training Authority (W&RSETA), in partnership with the South African Mobile Devices Distributors and Repairers Association (SAMDDRA), under the W&RSETA Small, Medium and Micro Enterprise (SMME) Development Programme.

Since its introduction in 2024, the programme has trained 326 South Africans against a target of 500 beneficiaries.

The three-month practical training programme equips participants with cellphone repair skills while preparing them to establish and operate businesses in their own communities.

Speaking at the handover, Manamela said government was committed to expanding the initiative and would seek to support at least 25 more entrepreneurs in the new year.

“The commitment that has been made by government and SETA is that they will expand, they will extend this commitment to a minimum of 25 more in the new year,” he said.

Manamela also challenged other Sector Education and Training Authorities (SETAs) to collaborate with W&RSETA to expand the programme and explore funding opportunities beyond government.

“This is a challenge to the rest of the other SETAs to collaborate with Wholesale and Retail SETA. Why should we only look for money within the state?”

He said the private sector, particularly telecommunications companies and mobile device manufacturers, should be brought into efforts to support young entrepreneurs entering the cellphone repair industry.

“The private sector, the telecoms companies, the manufacturers of that are endorsing some of the products and want to be specialists in those,” Manamela said.

According to the Minister, the cellphone repair industry has significant potential to create opportunities for young people, women and persons with disabilities.

“We need to support the rest of the young people who want to do business, men and women, who want to contribute to employment creation, who also want to make an impact in their communities and ensure that they have a sustainable life,” he said.

Manamela said the demand for mobile technology services demonstrated the need to expand the skills pipeline.

He referred to an estimate presented by the Association of Mobile Distributors that suggested demand for about 20,000 mobile technology technicians.

“He estimates that 20,000 mobile technologies are in demand. And so that’s something that we need to ensure that we address,” he said.

The minister said the programme also demonstrated the important role small businesses could play in tackling unemployment.

“The National Development Plan targets 11 million jobs coming out of small businesses,” he said.

The National Development Plan’s employment target is to create 11 million additional jobs by 2030, while envisaging that about 90% of new jobs would come from small and expanding firms.

The minister said beneficiaries should not only be viewed as recipients of training and equipment, but as emerging business owners capable of creating jobs themselves.

“I was trying to hear from each of the businessmen and women… at least each of them have employed some additional persons. Some of them even went on to employ two people in their businesses,” he said.

Manamela said the programme could also create opportunities beyond cellphone repairs, particularly in electronic waste management.

“There are also other things which they’ve mentioned, which I think we should not underestimate, the potential that their businesses have, expanding into e-waste, which is green jobs,” he said.

He acknowledged that some beneficiaries had raised concerns about competition within the industry and said government needed to ensure that trained entrepreneurs were supported to build sustainable businesses.

“What it means is that we need to support them, that there might be equality, something that’s guaranteed, something that’s endorsed, something that’s also a decent place to work and get yourself fixed,” he said.

Manamela said the fact that some beneficiaries were operating from their homes should not be viewed as a limitation.

“There’s no reason why it can’t be their home,” he said.

He also drew parallels between the cellphone repair programme and the township spaza shop economy, saying skills should determine who participates in small business rather than race, gender or age.

“Any person, given the right skills and trade, can run a spaza shop. It’s not something that’s designated to a particular race or a particular gender or a particular age,” he said.

He said the same principle should apply to cellphone repair businesses and other enterprises in the township economy.

“As long as you’re given the necessary skills, spaza shops have been there historically in our communities,” Manamela said.

Manamela said the success of the cellphone repair programme could provide a model for broader small-business development if government and its partners were able to replicate it in other communities.

“If this model works, and it has worked in the past, it means that our investment into small business development will begin to yield results in terms of employment,” he said.

Beneficiaries are based in several parts of the country, including Gauteng, KwaZulu-Natal and Limpopo, with locations including Sebokeng, Soshanguve, Polokwane and Umlazi.

Manamela said the programme should be expanded to communities that had not yet benefited.

“If they succeed, we have a model that we can replicate,” he said.

He also called on communities to support the trained technicians by using their services instead of opting for cheaper repairs from unqualified individuals.

“These are qualified. These have the necessary skills. Some of them have been in the trade for quite some time,” he said.

The minister said the next phase of the programme should focus on helping beneficiaries sustain and diversify their businesses, while creating more employment opportunities.

“We must not just invest into the business, but look at various possible ways of diversifying their businesses,” he said.

INSIDE EDUCATION

The post R19m cellphone repair programme puts 25 entrepreneurs in business in Sebokeng appeared first on Inside Education..

By Levy Masiteng 

Navalsig High School are the new Free State Kay Motsepe Schools Football U19 provincial champions after defeating Ntsu Secondary in a thrilling provincial final at the University of the Free State in Bloemfontein.

The provincial showdown over the weekend brought together 18 schools for a day of high-quality school football.

Navalsig produced the performance that mattered most, overcoming Ntsu Secondary to secure the championship and earn the right to represent the Free State at the national Kay Motsepe Schools Football Finals.

The victory was rewarded with a R150,000 cheque, trophy and gold medals.

The triumph adds another significant achievement to Navalsig’s growing football reputation. 

Earlier this year, the Bloemfontein school impressed at the Absa Wildeklawer Soccer Tournament, defeating Northwood 3-1 in the group stages. 

Now, however, their attention will turn to the national stage.

Navalsig will carry the Free State flag at the National Kay Motsepe Finals in Soshanguve from 25 to 30 September 2026, where the country’s top school teams will battle for national honours.

The prize on offer at that stage is enormous, with the U19 national champions set to receive R3 million, according to the Free State Department of Education.

INSIDE EDUCATION

The post Navalsig crowned Free State Kay Motsepe U19 champions appeared first on Inside Education..