By Thapelo Molefe

Higher Education Minister Buti Manamela has been pressed by MPs to explain who authorised the remuneration of four advisers appointed to assist National Student Financial Aid Scheme (NSFAS) administrator Professor Hlengani Mathebula after confirming that Finance Minister Enoch Godongwana had not approved their pay.

The issue arose during a briefing by the NSFAS to Parliament’s Portfolio Committee on Higher Education on Wednesday on progress in stabilising the entity since it was placed under administration.

Committee member Sihle Lonzi repeatedly questioned Manamela about the appointment and remuneration of the four advisers supporting Mathebula.

Manamela confirmed that the advisers were appointed under Section 17B of the NSFAS Act.

However, when Lonzi asked whether the Finance Minister had approved their remuneration, Manamela replied: “No.”

The response raised questions about how the advisers’ remuneration had been authorised and whether the process complied with Section 17C of the NSFAS Act.

Lonzi pointed to Section 17C, which states that the Minister, with the approval of the Finance Minister, may determine the remuneration and allowances paid to the administrator and any other person appointed under Section 17B.

Lonzi then pressed Manamela to explain what he had approved when he concurred with the appointment of the four advisers.

Manamela said his approval related to the appointment of the advisers and the conditions attached to their appointments, but he did not have the detailed submission before him.

“I don’t have the letter request or the submission. It’s quite a detailed submission. But what I have is the letter that confirms that the advisers can be appointed, and the conditions which need to be followed in line with the appointment of those advisers,” Manamela said.

He said the department would provide the committee with the relevant information.

Lonzi had earlier challenged Manamela after the minister initially appeared unable to provide details of what had been approved for the advisers.

He told the minister that the committee was specifically asking about remuneration, rather than the minister’s authority to approve the appointments.

“I’m not talking about appointments, and I think I’ve stressed this point enough. I’m talking about the remuneration of the Advisers,” Lonzi said.

Manamela responded that information on how much the advisers had been paid and the process relating to their remuneration would be furnished to the committee.

The issue of who authorised the financial commitment was also raised by committee member Delmaine Christians.

Christians asked Manamela who had authorised the financial commitment for both the administrator and the advisers.

“For the administrator, we’re waiting for the Minister of Finance and for the advisers, as I said, I think we’ll just have to provide you with all of those information,” Manamela said.

Christians said the committee needed a full account of how the process unfolded, including the appointment of the administrator and advisers, their remuneration packages and the Treasury concurrence process.

“We need to have an understanding as a committee how that all transpired,” Christians said.

Committee member Karabo Khakhau questioned the chronology of the appointments, asking how the administrator could have been appointed and started working while his remuneration was still being finalised, before subsequently requesting four advisers whose combined cost was also under consideration.

Khakhau questioned whether the government should have established the financial implications of the appointments before proceeding with them.

Manamela rejected what he described as loaded insinuations but explained the sequence of events.

He said the administrator was appointed first, with the department seeking concurrence from the Finance Minister on the administrator’s costs. Mathebula then assumed office and recommended four additional advisers, whose appointments Manamela subsequently approved.

The department was still waiting for confirmation from the Finance Minister on the administrator’s remuneration.

Manamela maintained that his department’s interpretation of the legislation was that Treasury concurrence applied to the administrator’s remuneration rather than separately to the advisers.

He said the administrator was appointed on 4 May 2026, after which Mathebula recommended four people to assist him.

“Based on practise, the recommendation from the Administrator only requires concurrence from the Minister of Higher Education. And that we do not need any further concurrence outside of that,” Manamela said.

Committee chairperson Tebogo Letsie summarised the minister’s position as meaning that Manamela had not sought Treasury concurrence under Section 17C for the advisers because his interpretation was that such concurrence was required only for the remuneration or conditions of employment of the administrator.

The interpretation was challenged by committee members, who argued that Section 17C expressly refers not only to the administrator but also to “any other person appointed in terms of Section 17B”.

Manamela said the department had obtained legal advice on the interpretation of the provisions and would provide further information to the committee.

The minister also acknowledged that the process around the administrator’s remuneration had taken longer than it should have.

He said Mathebula’s appointment and the subsequent determination of his remuneration were separate processes, with the department still engaging Godongwana on the matter.

Manamela said Mathebula’s appointment had been gazetted with effect from 4 May 2026 under sections 17A to 17D of the NSFAS Act.

He stressed that the Finance Minister’s concurrence related to the remuneration payable following the appointment and did not determine whether Mathebula had lawfully been appointed as administrator.

Manamela also acknowledged the unusual position in which the administrator had been working without payment while the remuneration process remained unresolved.

He said the department was engaging Godongwana urgently to finalise the matter and that he would account to the committee and the public once the process had been concluded.

The minister said the situation had exposed gaps in the framework governing institutional administrations and highlighted the need for clearer guidelines covering appointments, remuneration, support arrangements, expenditure controls and exit arrangements.

He said similar delays had occurred in previous administrations and that the department would have to work on regulations to create a standard framework for future interventions.

“This is quite regrettable,” Manamela said, referring to the delay in finalising the administrator’s conditions of service, while thanking Mathebula for continuing to work without payment.

Letsie agreed that the experience had exposed gaps in the current legislative framework governing administrations.

He said the committee needed to consider how the legislation could be improved so that remuneration, conditions of service and other administrative arrangements were dealt with more clearly when an institution was placed under administration.

Manamela also said the department had requested a complete account of everyone appointed or contracted to support the administrator, including documentation on their remuneration and contracts.

“Everything that happens at the NSFAS has to happen within the law,” Manamela said, adding that the department would examine whether the processes followed in appointing the supporting team complied with the law.

The minister maintained that the department remained supportive of Mathebula and his administration, while stressing that support did not remove the need for proper oversight.

He said the department’s responsibility was to ensure that decisions taken at NSFAS complied with both the spirit and letter of the law.

The committee is expected to receive further information from the department on the appointment process and remuneration arrangements involving Mathebula and the four advisers.

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By Thapelo Molefe

Higher Education and Training Minister Buti Manamela has called on businesses to open their workplaces to technical and vocational education and training (TVET) students, saying stronger industry partnerships are essential to improving graduates’ employment prospects.

Manamela made the call on Thursday while officially launching TVET Month 2026 at Esayidi TVET College in KwaZulu-Natal, where he highlighted work-integrated learning as a key component of efforts to strengthen the country’s skills pipeline.

The launch, held under the theme “TVET: The Inclusive Home of Occupational Excellence, Driving the Skills Revolution”, brought together Grade 9 to 12 learners, TVET students and alumni, government representatives, industry partners and community members.

Manamela said government could not bridge the gap between skills training and employment on its own and urged companies to treat workplaces as places of learning.

“Our focus is to make sure that students spend some time … in the classroom, you spend some time in the workshop, you also spend some time in a workplace,” Manamela said.

He said South Africa could learn from countries with established dual training systems, but these systems worked because industry played an active role in training students.

“We cannot alone as government resolve the connection between skills and training,” he said.

“But all of those countries work because industry opened their doors, and the workplace is also seen as a learning place.”

Manamela called on businesses across sectors to take in students for workplace-based learning.

“If you’re running a farm, get students who are doing agricultural work. If you’re running a hair salon, get a student who’s doing hairdressing and beauty,” he said.

“So we really want to call on you as industry to adopt students and ensure that those students are placed in the workplace.”

The minister said the department was working with organisations such as the Department of Health and private-sector providers to create practical training opportunities for TVET students.

He also pointed to improvements in TVET college infrastructure and the quality of lecturers, saying students needed exposure to modern equipment and real-world industry practices.

“We have improved the infrastructure in our TVET colleges. We have the machinery that any child in many of our TVET colleges, any child anywhere in the world, be it in the continent,” Manamela said.

He said lecturers were increasingly being exposed to industry to ensure that training was informed by practical experience.

“There’s now emphasis on the fact that our lecturers need to have exposure to industry so that they don’t teach people mechanical engineering when they themselves have not seen the engine of a car,” he said.

Manamela said government was seeking to position TVET colleges as institutions of choice for young people considering further education, employment and entrepreneurship.

He encouraged learners to visit TVET campuses, speak to lecturers and students, and see the workshops and equipment available before making decisions about their futures.

“Universities are important institutions but TVET colleges are equally important institutions that I want to encourage you to experience,” he said.

The minister also urged Grade 12 learners to apply early for further education and financial aid rather than waiting until they received their matric results.

“It’s August already and I’m sure you have been at work preparing for your matric examination. I want to wish you all the best. But I also want to encourage you to apply now,” Manamela said.

He warned that learners who waited until after receiving their results could find themselves without a place at a university or TVET college, or without funding.

“We’ve seen many instances where students pass their matric with flying colours, get surprised by the number of distinctions that you have accumulated for that year, you get shocked by your success, you haven’t applied for university, you haven’t applied for NSFAS, you haven’t applied to a TVET college for next year,” he said.

“And so I want to encourage you to apply now and secure your space in these institutions now.”

Manamela said TVET colleges also provided opportunities for students interested in entrepreneurship, pointing to Esayidi’s Maker’s Space as an example of initiatives encouraging students to pursue entrepreneurial ventures.

He said many students could study at TVET colleges without paying tuition fees through funding from the National Student Financial Aid Scheme (NSFAS), Sector Education and Training Authorities, colleges and other state entities.

“Most students who are studying at our TVET colleges are studying for free,” he said.

He added that students pursuing occupational trades could also receive stipends while undergoing their training.

Manamela said TVET graduates had strong employment prospects, particularly after completing work-integrated learning.

“A good proportion of TVET college graduates get employment almost immediately after completing, especially their work-integrated learning,” he said.

Manamela said TVET colleges offered learners an opportunity to combine classroom theory, practical training and workplace experience.

“We don’t only show you the picture of a car and tell you how it was made. We also allow you into the workshop to touch and feel the gearbox, to touch and feel whatever else that’s in the car,” he said.

He acknowledged that the TVET system still faced challenges but said its record of producing artisans and other skilled workers showed that it remained an important part of South Africa’s education and training system.

“It’s not yet a system that is perfect. It’s not a system that we want it to be where it should be,” he said.

“But if it’s a system that has produced the many artisans who’ve been absorbed into industry, it therefore means that it is a system which you can rely on.”

The department said TVET Month would include activities aimed at exposing school learners to TVET colleges, their programmes, workshops, lecturers, students and industry opportunities.

South Africa has 50 TVET colleges and more than 350 campuses across the country, offering training in fields including engineering, agriculture, ICT, plumbing, electrical work and other occupational programmes.

Manamela said the month-long campaign was intended to strengthen the profile of TVET colleges and encourage young people to consider them alongside universities when planning their futures.

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Staff Reporter

The Gauteng High Court in Pretoria has suspended the appointment of Professor Hlengani Mathebula as administrator of the National Student Financial Aid Scheme (NSFAS), pending a final decision on a legal challenge brought by seven former board members.

The court on Friday interdicted Mathebula from continuing as NSFAS administrator pending the finalisation of Part B of the former board members’ application, which seeks to have Higher Education and Training Minister Buti Manamela’s decisions reviewed and set aside.

“The appointment of the second respondent as administrator (Mathebula) of the National Student Financial Aid Scheme (NSFAS) in terms of section 17A(1)(b) of Act 56 of 1999 (the ‘Act’) by the first respondent on 4 May 2026 is suspended pending finalisation of Part B,” the order reads.

The court also authorised and directed the applicants to continue with the management, governance and administration of NSFAS and perform its functions pending the final determination of Part B.

The seven board members approached the court in May after Manamela dissolved the NSFAS board, placed the scheme under administration and appointed Mathebula on 4 May. They are seeking to have the minister’s decisions reviewed and set aside.

Manamela had defended the intervention, saying legal advice obtained by his department found that the board’s composition did not comply with the NSFAS Act. He told Parliament that three student-nominated positions were vacant and that a nominee from the finance minister had not been appointed.

The minister also cited governance and operational problems at NSFAS, including board resignations, a disclaimer audit opinion, unresolved student appeals and concerns about the scheme’s systems and internal controls.

Mathebula had been appointed for 24 months or until a new board was appointed.

This is a developing story.

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By Thapelo Molefe

Higher Education Minister Buti Manamela has warned that the National Student Financial Aid Scheme (NSFAS) is facing an estimated R15 billion funding shortfall, saying the growing gap threatens the sustainability of South Africa’s fee-free higher education policy.

Briefing Parliament’s Portfolio Committee on Higher Education on Wednesday on progress in stabilising NSFAS under administration, Manamela said the shortfall had grown from about R2.5 billion in 2018 to R13.5 billion last year and was now estimated at about R15 billion.

“The most significant and I think unresolved issue remains the financial position at the NSFAS,” Manamela said.

He said the funding crisis was largely driven by growing demand for higher education, while the NSFAS allocation was effectively fixed through the Medium-Term Expenditure Framework and did not automatically increase with the number of students qualifying for funding.

“We have a policy to provide free education on the one hand. On the other hand, we have an allocation that is almost set in stone in the medium-term expenditure framework and in the budget for a cycle,” he said.

Manamela said the number of learners progressing from Grade 12 into higher education was increasing, putting further pressure on the student funding system.

He said government needed to confront whether it was prepared to provide the resources required to sustain fee-free higher education.

“We have made a commitment to South Africans that we will provide fee-free higher education, and we have to go and find the money,” he said.

“And if we don’t have that money from the national fiscus or from wherever, we need to rethink our approach towards a fee-free higher education.”

Manamela said the issue could not be treated as a problem belonging only to NSFAS or the Higher Education Department, but required a broader government response.

He said government was already discussing the matter with Finance Minister Enoch Godongwana, while policy proposals were also being developed.

The minister also raised concerns about the current state of NSFAS, which has been under administration since May.

He said the administrator’s initial stabilisation plan had correctly identified systemic weaknesses, including governance, financial controls, data, information and communications technology, audit remediation, accommodation, appeals and stakeholder confidence.

However, Manamela cautioned that the plan should not itself be regarded as evidence that NSFAS had been stabilised.

“Our preliminary assessment as the department is that the plan remains stronger at the level of strategic commitment than at implementation level,” he said.

He said the plan required clearer baselines, costed interventions and measurable milestones, as well as a clear framework for determining when the administrator would be able to exit.

“The test is whether NSFAS is measurably moving from instability towards reliable performance,” Manamela said.

The minister said the administrator had inherited serious structural weaknesses, including unreliable data systems, problems reconciling billing and registration records, accommodation payment challenges and defects in the appeals system.

He said historical reconciliation failures had also affected students’ ability in some cases to clear their accounts, obtain certificates and progress with further studies or employment.

Manamela identified student accommodation as the biggest immediate challenge facing NSFAS.

He said tens of thousands of students were currently recorded as being in non-accredited accommodation and stressed that students should not be punished for structural shortages.

“It is important that we send the message that students should not be penalised or punished for structural shortages,” he said.

“Temporary exceptions cannot become a permanent substitute for minimum safety, for quality and financial control standards.”

He said NSFAS needed a reliable accreditation and deviation database, stronger verification and payment controls, and systems to ensure legitimate accommodation providers were paid on time while students were protected from eviction caused by administrative failures.

Manamela also highlighted the so-called “missing middle” funding gap, saying NSFAS had received about 53,000 applications under the loan scheme, but only about 3,000 had been assessed as eligible.

He said the issue formed part of the longer-term discussion about stabilising student funding.

The minister also addressed concerns about the remuneration of the administrator and the appointment or contracting of people supporting the administration.

He said the administrator was appointed with effect from 4 May under sections 17A to 17D of the NSFAS Act, with the appointment published in the Government Gazette.

However, determining the administrator’s remuneration required concurrence from the Finance Minister, a process Manamela acknowledged had taken longer than it should have.

“The Department and I are engaging with the Minister of Finance urgently to ensure that this matter is finalised,” he said.

Manamela said he had also requested a complete account of the people appointed or contracted to support the administrator, including documentation relating to remuneration, contracts and the legal basis for the appointments.

“Everything that happens at the NSFAS has to happen within the law,” he said.

He said the department remained supportive of the administrator but would ensure that the processes followed in appointing the supporting team complied with the law.

With the next funding cycle approaching, Manamela said NSFAS’s readiness for 2027 would need to be measured against clear milestones covering applications, systems, funding policy, appeals and accommodation planning.

“2027 readiness must also be tested against hard milestones, applications and systems,” he said.

The minister said the administration should ultimately result in the rebuilding and redesign of NSFAS so that it no longer required repeated interventions.

“Administration cannot become NSFAS’s permanent governance model,” he said.

“The purpose of this intervention must be to rebuild an institution that no longer requires an intervention during crisis and therefore an administrator.”

Manamela said the department, NSFAS administration and Parliament should judge the progress of the intervention against that standard.

“Where mistakes have been made, I think they should and must be corrected. And where allegations require investigations, appropriate processes have to follow,” he said.

“The overriding obligation remains unchanged to build an NSFAS that performs its mandate reliably, lawfully, sustainably for the students of this country.”

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By Levy Masiteng 

Gauteng MEC for Education, Sport, Arts, Culture and Recreation Lebogang Maile has told affected schools to get their VAT affairs in order, saying that changes to the tax treatment of schools require them to review their records, deal with outstanding returns and apply for deregistration where necessary.

The changes took effect on 1 January 2026, when supplies made by schools registered under the South African Schools Act became exempt from Value-Added Tax.

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As a result, most affected schools no longer conduct an “enterprise” for VAT purposes and are required to exit the VAT system.

However, the Gauteng Department of Education said deregistration was not automatic, and schools that remain registered as VAT vendors must apply to the South African Revenue Service (SARS) to be deregistered.

“We call on principals, School Governing Bodies and those entrusted with the financial administration of our schools to familiarise themselves with these changes and ensure that their institutions comply. Good governance requires that every school understands its financial and statutory obligations and acts accordingly,” Maile said.

The department said schools must continue submitting the required VAT returns while their registrations remain active, with those returns generally expected to be nil unless adjustments are required.

Schools that charged VAT on supplies on or after 1 January 2026 must declare that VAT in the relevant VAT201 return. If a school later issues a credit note and refunds the VAT, the relevant adjustment may be made in line with SARS requirements.

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Affected schools must also assess whether they face so-called “exit VAT”.

Under section 8(2) of the VAT Act, a school may be required to account for VAT on certain goods and rights that formed part of its VAT enterprise and were retained when it stopped conducting that enterprise.

These could include certain trading stock, equipment, furniture, improvements to property and other enterprise assets where input VAT had previously been deducted.

SARS determines the position with reference to assets held immediately before schools ceased conducting an enterprise, effectively as at 31 December 2025.

Not every asset will attract exit VAT. Exclusions include goods or services on which input tax was denied, as well as donated goods or assets acquired for no consideration where the relevant cost is regarded as nil.

Schools that are liable for exit VAT will only be required to pay it from 1 January 2027 and may settle the amount in 12 equal monthly instalments.

Where a school requires a period longer than 12 months, this must be agreed with SARS upfront.

SARS has indicated that penalties and interest will not be imposed on exit VAT where payment is made through the prescribed 12-month instalment arrangement from 1 January 2027, or within another period agreed with SARS.

“We want schools to understand both the opportunity and the responsibility created by these changes. This is not simply an accounting exercise. School finances are public resources entrusted to institutions for the benefit of learners, and they must therefore be managed with discipline, transparency and accountability,” Maile said.

There is a limited exception for schools that qualify as welfare organisations and conduct qualifying welfare activities.

Those wishing to remain VAT registered must apply to SARS for a VAT ruling confirming their welfare organisation status, welfare activities and the extent to which they may remain registered as VAT vendors.

The department urged affected schools to review their VAT records, determine whether VAT was charged after 1 January 2026, identify enterprise assets that could give rise to exit VAT and ensure all outstanding returns and other obligations are addressed.

It also warned schools against relying on unofficial information or making assumptions about their obligations, saying they should seek guidance from the department and SARS where there is uncertainty.

“We expect our School Governing Bodies to exercise the fiduciary responsibilities entrusted to them with the highest level of care. Compliance with tax legislation forms part of responsible financial governance. Every rand available to our education system must ultimately contribute towards creating better conditions for teaching and learning,” Maile said.

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By Levy Masiteng

A case of malicious damage to property has been opened at Alexandra Police Station after four desks and two chairs were destroyed by fire at Eastbank High School in Alexandra, Gauteng.

The incident, which took place on Tuesday, disrupted teaching and learning at the already overcrowded school, prompting Gauteng Education MEC Lebogang Maile to condemn the destruction of school property.

According to the Gauteng Department of Education, a preliminary report indicated that the furniture was destroyed by fire on the school premises.

Maile said the school would institute disciplinary proceedings against learners identified in connection with the incident.

“We are deeply disappointed and disturbed by what has happened at Eastbank High School. There is absolutely no excuse for burning education infrastructure, learning materials or furniture,” said Maile.

“We cannot complain about shortages today and destroy the very same scarce resources tomorrow. Every desk and every chair matters, particularly in a school already experiencing severe pressure on its available resources.”

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The incident came as Eastbank High grapples with major resource and capacity challenges.

According to the department, the school was built to accommodate about 1,200 learners but currently has 2,063, meaning it is accommodating 863 more learners than it was designed for.

The furniture shortage is equally severe, with the school reporting a need for about 1,200 desks and 600 chairs.

The department said it has already delivered 1,000 chairs and 150 desks during 2026, bringing the total furniture delivered this year to 1,150 pieces.

Despite this intervention, significant shortages remain.

“When a school tells us it needs another 1,200 desks and approximately 600 chairs, burning four desks and two chairs cannot be dismissed as an insignificant act,” Maile said.

“Six pieces of furniture destroyed means six resources have been removed from an already constrained school environment. Government must now replace resources that should still have been available to learners. This cycle of destruction and replacement is unsustainable.”

The department has also responded to reports that the furniture was burned because learners were cold due to broken classroom windows.

It said all windows at the school had been repaired during the previous year and that the school started the 2026 academic year without broken windows.

The school has since reported that approximately 60 windows require repairs following recent learner damage.

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The department also said extensive repairs to doors were carried out about three months ago, but eight doors currently require further repairs.

“We started the academic year with the windows repaired. Today, we are again confronted with approximately 60 windows requiring attention,” said Maile.

“We repaired doors three months ago, and eight doors again require repairs. This cannot become a revolving door where government and schools continuously spend limited public money repairing the same infrastructure because it is repeatedly damaged.”

Maile called on School Governing Bodies to strengthen the management of resources and ensure routine maintenance is dealt with before problems become more expensive.

“We cannot have schools struggling indefinitely with simple maintenance matters where resources and responsibilities exist at school level. SGBs have an important governance responsibility. They must budget properly, prioritise maintenance and ensure that the resources entrusted to schools are managed prudently,” he said.

The department said it would continue working with the school leadership and SGB to address the immediate furniture shortages, maintenance problems and overcrowding.

It will also cooperate with SAPS in the malicious damage to property investigation and ensure disciplinary processes are followed against learners implicated in the incident.

The department said counselling and support structures had also been activated following the death of a popular teacher at the school.

“We understand that learners are grieving. We understand the pain associated with losing a teacher who played such an important role in their lives. We will support them through that grief. But grief cannot become a licence to destroy,” Maile said.

“We must end this culture of hooliganism. We will acknowledge our shortcomings and fix what government is responsible for fixing. We expect SGBs to fulfil their responsibilities. But we equally expect learners, parents and communities to protect what belongs to them,” Maile said.

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