CAPE TOWN — The recent NSFAS High Court ruling that suspended the appointment of administrator Prof. Hlengi Mathebula and ordered the reinstatement of the disbanded board has been hailed as a major victory by the Economic Freedom Fighters (EFF). According to EFF MP and portfolio committee member Sihle Lonzi, the judgment completely vindicates the party’s long-standing concerns regarding Higher Education Minister Buti Manamela and his handling of the national student financial aid scheme.
The High Court’s decision to overturn the administration and reinstate the board highlights severe procedural flaws and a failure to consult properly. For the EFF, this legal intervention confirms their stance that the entity was fully capable of operating under a standard governance model—comprising a board, a CEO, and executive management—without the need for unilateral administrative control.
Financial Mismanagement and Legal Violations
Lonzi recalled that on May 29 of this year, the EFF formally requested the minister to appear before parliament to justify his decision to place the student funder under administration. The party argued at the time that placing the entity under administration dangerously concentrated governance, operational, and executive power into the hands of a single individual, creating a fertile ground for state capture and the diversion of student funds to political allies.
Now, the EFF is calling for Manamela to step down, labeling the minister as “incompetent” and “incoherent.” Lonzi drew a sharp contrast between Manamela and his predecessor, noting that while the former minister faced criticism for arrogance and questionable appointments, her decisions did not result in adverse court orders or massive financial implications.
Under Manamela’s watch, the EFF alleges that financial misconduct has run rampant. Lonzi pointed out that the minister seemingly violated Section 17C of the NSFAS Act, which requires approval from the Minister of Finance before remunerating advisors. Despite lacking this approval, consultants have reportedly been invoicing the entity up to R500,000 a month. With the administration initially slated to last for 24 months, Lonzi warned that the financial burden on the state would have been immense, ultimately describing Manamela as a “monumental failure” who is embarrassing President Cyril Ramaphosa’s cabinet.
Cutting Out the “Middlemen”
With the board reinstated, the EFF has outlined a strict mandate for the entity to regain public trust and ensure stability for student funding. A primary focus must be the elimination of costly “middlemen.”
Lonzi revealed that during a recent parliamentary engagement, student accommodation representatives confirmed that the funder spends approximately R267 million annually on just four “solution providers” for student housing alone. This is in addition to millions spent on ICT and operational consultancies. The EFF argues that the organization was designed to be an intermediary between the government and higher learning institutions, but corrupt networks have created “intermediaries of intermediaries” to siphon resources.
To stabilize the system, the EFF is pushing for radical decentralization. Instead of processing applications from expensive, luxurious offices in Cape Town, the party argues that funding processes should be handled at the campus level by universities and TVET colleges. Furthermore, Lonzi insisted there is no reason the organization cannot be housed in standard government buildings to drastically reduce overhead costs.
Preventing Political Interference in Executive Appointments
The reinstated board previously alleged that the minister dissolved them specifically to block the appointment of a permanent CEO. In response, Lonzi confirmed that the EFF will be closely monitoring the executive appointment process to prevent political interference.
Drawing parallels to the disruptions seen in the National Skills Fund and various Sector Education and Training Authorities (SETAs), Lonzi accused ministers of routinely dissolving functioning boards to install loyalists and entrench patronage networks. The EFF insists that corporate governance and the King Code must be respected, ensuring that boards retain their authority as accounting authorities without arbitrary ministerial interference.
As review proceedings loom later this year, the EFF maintains that the focus must remain squarely on the students, demanding a seamless, decentralized funding process free from political capture.
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