Ousted NSFAS administrator, Manamela not off the hook

By Mawande AmaShabalala
Mawande@sundayworld.co.za

The problems facing beleaguered ousted National Student Financial Aid Scheme (NSFAS) administrator Professor Hlengani Mathebula, who was toppled by the Pretoria High Court on Friday, are far from over.

Higher Education minister Buti Manamela appointed Mathebula in May to stabilise the scheme after disbanding its board. Friday’s court ruling, however, suspended the administrator’s appointment and, by extension, his support staff and advisors, pending the finalisation of the merits of the review application.

The court cast aspersions on Mathebula’s suitability on the back of the adverse findings of the Nugent Commission into SARS, which criticised his handling of allegations of corruption and governance failures during his time as a senior executive at the revenue service.
In the interim, the court reinstated the disbanded seven-member NSFAS board, which immediately went back to work and announced plans to probe alleged breaches under Mathebula’s three-month reign.

“The board has noted the various concerns and issues that have emerged in the public domain regarding the institution and will attend to these matters as a priority. Where any wrongdoing, misconduct or unlawful conduct is identified, appropriate action will be taken in accordance with the law and applicable governance processes.”
The former Media Development and Diversity Agency chairperson’s woes have also been compounded as he will have to answer to Parliament following a heated portfolio committee marathon meeting on Wednesday.

On the back of Friday’s court order and the developments flowing from Wednesday’s meeting, higher education portfolio committee chairperson Tebogo Letsie dispatched letters to Mathebula and Manamela seeking clarity.
For one, Letsie wants more details into Mathebula’s controversial appointment of four advisors.
These appointments dominated proceedings on Wednesday, with ANC MP David Kgabo questioning Manamela about who would be held accountable if those advisors are invalidated.

It also came to light that the appointment of the advisors could be in violation of Section 17C of the NSFAS Act, which explicitly states that any expenditure on Mathebula’s support staff needs the approval of the finance minister, Enoch Godongwana. By Manamela’s own admission to the committee, this approval did not happen.
Letsie has since given Mathebula and Manamela until August 24 to provide supporting documents in response to his query.

According to his request to the ousted administrator, Letsie further seeks to ascertain whether the necessary background checks were performed.
“The entity is requested to submit… a copy of the legal opinion obtained regarding the background checks conducted on Ms Bojane Segoa, a member of the NSFAS audit and risk committee (appointed by Mathebula), including the legal basis and considerations informing the assessment of her suitability for appointment.”

The portfolio committee also wants an explanation on how the advisors’ remuneration packages were determined and approved, including the approval processes followed and the basis for determining the respective packages.
Mathebula is expected to account for his infamous taste for the finer things at the expense of taxpayers by providing a detailed breakdown of the travel and accommodation expenditure since assuming office, including the dates, destinations, purpose of travel, accommodation costs, travel costs and total expenditure incurred, “including the bookings at The Pepper Club Hotel and Westin”.

Mathebula has racked up more than R300 000 in the expenditure items requested by the portfolio committee.
From the minister, the portfolio committee wants evidence of his claim that he approved the appointment of the advisors based on advice from the department headed by director-general Dr Nkosinathi Sishi.
Letsie wrote to Manamela and copied Sishi on Friday: “The department is requested to submit… a copy of the advisory document that informed the decision to approve the
appointment of the administrator’s advisors…”

Manamela and the department have also been called upon to provide a copy of the three-month stabilisation plan for NSFAS following the commencement of the administration period, setting out the key interventions, deliverables, implementation timelines and measurable outcomes.
NSFAS, an over R50-billion operation that funds no less than 800 000 students, is, by Manamela’s admission, facing a R15-billion funding shortfall that has resulted in institutions of higher learning being owed about R10-billion this year alone.

The non-payment of school and accommodation fees puts thousands of students at the risk of eviction and hunger because allowances have been frozen due to gap investigations.
Manamela’s spokesperson Matshepo Seedat did not respond to Sunday World’s enquiry.

  • The Pretoria High Court suspended Professor Hlengani Mathebula's appointment as NSFAS administrator, reinstating the original NSFAS board.
  • The court criticized Mathebula's suitability due to adverse findings from the Nugent Commission relating to his past at SARS.
  • The NSFAS board plans to investigate alleged breaches during Mathebula's three-month tenure.
  • Higher Education Portfolio Committee chair Tebogo Letsie requested detailed information from Mathebula and Minister Buti Manamela regarding advisor appointments, background checks, and expenditure.
  • NSFAS faces a R15-billion funding shortfall affecting around 800,000 students, with institutions owed approximately R10 billion this year.

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