THE resignations of National Student Financial Aid Scheme board members shows the scheme is far from being stable, hence it has been placed under administration.
Whether this a good move or not, only time will tell.
But unions, students movements and civil society, are not singing from the same hymn book as that of Minister of Higher Education- Buti Manamela, who on Monday in Pretoria, addressed the shocking move.
The board was led by the interim chairperson, Dr Mugwena Maluleke, and the Chairperson of the Human Resources and Organisational Development Committee, Karabo Mohale, who both resigned with immediate effect.
In defending his move, Manamela, said the move is necessary to ensure the long-term sustainability of the financial aid scheme.
Manamela’s spokesperson, Matshepo Seedat says: “Dr Maluleke has formally stepped down from his position as board member and interim chairperson, citing personal and academic commitments.
The Minister has expressed appreciation for his contribution during his tenure, particularly in efforts to strengthen governance and support the core mandate of the NSFAS.”
Seedat says: “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.
In light of these developments, the Minister is currently assessing the legal and governance implications.”
Labour union NEHAWU says previous administrations led to maladministration and financial irregularities.
Its national spokesperson Lwazi Nkolonzi says: “We refer to the Auditor General’s reports culminating from the 2018-2019 financial year. When you look at those auditor reports from 2018-2019, that’s when NSFAS was under administration up until the current moment.
And currently, there is actually an investigation by the SIU about those billions that were wasted and found to have been an irregular expenditure by the institution under the administrators”.
The union has also criticised the decision as lacking consultation.
Manamela is said to be in consultation with the remaining board members, since they do not form a quorum to vote.
The scheme has had not a permanent CEO with former NYDA CE- Waseem Carrim, in acting role.
Hlengani Mathebula, has been appointed as administrator.
