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By Johnathan Paoli
Higher Education Minister Buti Manamela has accepted a series of resignations from the National Student Financial Aid Scheme (NSFAS) board, including acting chairperson Dr Mugwena Maluleke and board member Karabo Mohale, raising concerns about whether the board can continue to function lawfully.
In a statement on Wednesday, ministerial spokesperson Matshepo Seedat said Manamela had accepted the resignations as part of a wave of departures from the scheme’s board.
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“The cumulative effect of these and other resignations has significantly reduced the number of remaining voting members of the Board, raising serious concerns regarding the Board’s ability to continue to constitute itself lawfully and to discharge its statutory and fiduciary responsibilities,” Seedat said.
Maluleke stepped down as both board member and interim chairperson with effect from Monday, citing personal and academic commitments.
Mohale, who chaired the Human Resources and Organisational Development Committee, has also resigned, with the ministry saying it had noted her reflections on institutional challenges, including organisational redesign, executive capacity and governance systems.
The ministry is now assessing the legal and governance implications of the shrinking board, including whether it remains capable of exercising oversight and taking decisions under the applicable legislative framework.
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Seedat said the minister had initiated formal engagement with the remaining board members, giving them an opportunity to make representations on the current situation and propose lawful and practical alternatives to ensure stability.
She said the process was aimed at ensuring procedural fairness before any further action was taken.
The latest departures come amid mounting instability at NSFAS.
Maluleke had only recently assumed the role of acting chairperson in November last year, following the resignation of his predecessor.
His appointment, made by Manamela in terms of the NSFAS Act, was intended to stabilise the board during a turbulent period.
At the time, NSFAS described him as a seasoned educationist and trade unionist with extensive experience in governance, policy development, stakeholder engagement, and organisational leadership.
NSFAS had expressed optimism that his leadership would help strengthen governance and reinforce the scheme’s mandate to support students in need.
Maluleke’s appointment followed the dramatic resignation of former board chairperson Dr Karen Stander, who stepped down with immediate effect late last year.
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In a letter to Manamela before her departure, Stander warned that NSFAS was facing severe governance failures and risked institutional collapse.
She cited allegations of racism, bullying and threats to her family, describing a “toxic environment” that made it impossible for her to continue in her role.
In her resignation letter, Stander also outlined several alleged incidents of interference and procedural irregularities involving senior management and department officials, including what she alleged was the irregular appointment and extension of acting CEO Waseem Carrim’s tenure, as well as attempts to influence the composition of board committees.
Carrim has rejected allegations against him.
Stander further alleged that governance structures were being undermined by efforts to centralise financial decision-making powers and interfere with internal oversight mechanisms.
Despite the leadership turmoil, the department has sought to reassure students and institutions that NSFAS operations remain unaffected, with funding disbursements continuing as normal.
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The spokesperson said NSFAS remained central to the government’s efforts to expand access to higher education and that stabilising the institution was a priority.
She said the department would continue engaging Parliament, the National Treasury and other oversight bodies as the process unfolds, and that further updates would be provided in due course.