NSFAS administrator Professor Hlengani Mathebula and Higher Education Minister Buti Manamela faced sharp questioning from members of parliament on Wednesday over the appointment of four advisers, two of whom were compensated through private companies without National Treasury approval or standard supply chain management processes.
The scrutiny centred on the legal framework governing such appointments. Section 17B of the NSFAS Act permits an administrator to appoint qualified experts with the minister’s approval. However, Section 17C stipulates that the Minister of Higher Education must secure concurrence from the Minister of Finance before determining remuneration and allowances for the administrator and support staff.
According to a recent Daily Maverick investigation, two senior advisers to Mathebula billed nearly R500,000 per month through private firms. NSFAS has reportedly argued that procurement rules do not apply to these arrangements, a position the National Treasury disputes.
During the committee sitting, MP Gaolatlhe Kgabo pressed Manamela on whether he had obtained the required approval from Finance Minister Enoch Godongwana regarding Mathebula’s salary and the advisers’ compensation. Manamela acknowledged that Treasury concurrence had not yet been secured but stated he was confident the matter would be resolved.
The questioning falls under Chapter 2A of the NSFAS Act, which governs ministerial interventions and the appointment of administrators during periods of operational or governance failure. The episode has reignited concerns about transparency and compliance within the student funding scheme, which has faced repeated administrative crises in recent years.
Parliament’s portfolio committee on higher education is expected to pursue the matter further, with potential implications for how administrator-led interventions are structured and monitored. The outcome may also test the enforceability of financial oversight provisions designed to prevent irregular expenditure in public entities.
