National Student Financial Aid Scheme (NSFAS) administrator Professor Hlengani Mathebula has been spending public funds without the approval of finance minister Enoch Godongwana as stipulated in statutes governing the post he occupies.
Sunday World has learned that Mathebula has sought the services of four technical advisors, who are costing the taxpayer about R10-million per year. His luxury accommodation and travel expenses, totalling R200 000 in just over a month since his appointment, have
also been flagged.
All this has been happening without the greenlight from Godongwana and in contravention of the NSFAS Act.
Chapter two, section 17C of the Act states: “The minister (Manamela), with the approval of the minister of finance (Godongwana), may determine the remuneration and allowances to be paid to the administrator and to any other person appointed in terms of section 17B.”
Buti Manamela’s spokesperson Matshepo Seedat has confirmed that Godongwana has not approved.
“We have to wait for the approval of the Minister of finance (Godongwana). The approval was requested after lengthy discussions within the department and with the Administrator on the remuneration of the Administrator,” she said.
Insiders say the remuneration of the four advisors and Mathebula’s accommodation expenditure, without Godongwana’s approval, might be irregular expenditure.
EFF MP Sihle Lonzi, who also serves in Parliament’s portfolio committee on higher education, slammed Mathebula and his political principal.
“The NSFAS administrator, who was suspended post the SARS Nugent commission, Hlengani Mathebula, is said to be bringing on two more advisors, taking it to four advisors with each receiving roughly R2.4-million; this will take the salary bill to about R20-million over the period,” said Lonzi.
“His own remuneration is yet to be approved by the finance minister. I don’t know why President Cyril Ramaphosa is allowing Buti Manamela to plunder state resources like this.
“This is despicable considering the many students who are still struggling with allowances.”
Sunday World has confirmed the advisor’s remuneration, a fact that has also been verified by NSFAS. We have also seen evidence of Mathebula’s luxury accommodation in Cape Town.
Mathebula has been enjoying a luxurious lifestyle in the Mother City, thanks to public funds, with a particular preference for the Pepper Club and Westin hotels. As of this month, Mathebula is renting for R50 000 a month at the expense of the taxpayer.
NSFAS spokesperson Ishmael Mnisi told Sunday World that Mathebula was in fact very prudent with public money compared to the administrator who came before him.
“Professor Hlengani Mathebula’s decisions have been preceded by a dispassionate assessment of the systemic risks as outlined by the minister of higher education and training in the government gazette. In the course of his work, he has been extremely considerate of NSFAS’s financial and other resources,” said Mnisi.
According to Mnisi, Mathebula’s administration has the lowest cost structure by design, despite having only four technical advisors whose housing is not covered by the entity.
“As a stakeholder-dependent entity, he has had to travel to meet some of the stakeholders, based on government-set rates. He has also invited stakeholders to NSFAS offices in Cape Town to cut down on travel costs. It is far-fetched to allege PFMA breaches in any of his decisions.”
Meanwhile, Mathebula’s problems are far from over, with his appointment the subject of a high court review application set to be heard on August 4.
In the litigation, former NSFAS board members are challenging Mathebula’s appointment as irrational and unlawful. At the core of their argument is that Mathebula is unfit for the office given his previous scandals, as SARS found him wanting.
Mathebula’s papers filed in court have countered that he is fit for public office because no recommendations were made by Nugent on him.
His argument has been seconded by Manamela.
Godongwana’s spokesperson had not responded to questions at the time of going to print.
- NSFAS administrator Professor Hlengani Mathebula has been spending public funds on four technical advisors and luxury accommodations without approval from Finance Minister Enoch Godongwana, violating the NSFAS Act.
- The advisors cost taxpayers approximately R10 million annually, and Mathebula's accommodation and travel expenses reached around R200,000 in just over a month, including renting a R50,000/month luxury unit in Cape Town.
- Finance Minister Godongwana has not approved these expenditures, and insiders suggest this may constitute irregular expenditure; opposition MP Sihle Lonzi criticized the situation as irresponsible amid ongoing student financial struggles.
- NSFAS defends Mathebula’s spending as prudent and cost-effective compared to previous administrations, stating housing is not covered by NSFAS and travel meets government rates.
- Mathebula’s appointment is under legal challenge by former NSFAS board members citing previous controversies and alleged unfitness, with a court review scheduled for August 4; Mathebula and Minister Buti Manamela maintain his suitability.
