The controversial administrator of the National Students Financial Aid Scheme (NSFAS) has adjusted the budget for his office upwards by R35-million to accommodate his costs and those of support staff, including four highly paid advisors.
NSFAS will also spend R200-million on consultants in this financial year.
Last week, company secretary Bantu Mazingi jumped ship, with insiders citing governance concerns as his reasons for departing the scheme tasked with helping millions of students access higher education institutions.
Sunday World has seen Prof Hlengani Mathebula’s 2026-27 adjusted budget approval request to higher education and training minister Buti Manamela.
Mathebula – who was chief enforcement officer at the SA Revenue Service during the height of the capture of the revenue service under Tom Moyane – was brought in as administrator in May after the dissolution of the NSFAS board. The acting chairman of the dissolved board, Mugwena Maluleke, had submitted a budget approval request to Manamela in March.
But Mathebula has since told Manamela that placing NSFAS under administration will see compensation costs skyrocketing by R35-million.
“Since the initial submission of the budget approval request (in March), significant changes have occurred within NSFAS operations,” reads Mathebula’s memo to Manamela.
The requested increase in the compensation budget since NSFAS was placed under administration comes as Mathebula’s own compensation is still subject to negotiations with the minister.
This week, Manamela revealed that Mathebula’s four advisors, Nkululeko Manyika, Dudu Hlatshwayo, Khulani Qoma and Madala Mthembu are contracted at R9.9-million per annum, or R2.5-million each.
Manyika and Hlatshwayo are financial advisors, while Mthembu will focus on strategic implementation, coordination, and special-project support, with Qoma taking up the advisory role for stakeholder communication, reputation, and change-management support.
Mathebula has already racked up around R200 000 in travel and accommodation costs since assuming office, benefits which will be extended to the advisors.
Manamela disclosed the fees while admitting that these must first be approved by the finance minister. “National Treasury must be allowed to perform its statutory role, and the ministry will cooperate fully with that process,” he wrote in a piece published in Daily Maverick on Friday.
Manamela and Mathebula have defended the costs, comparing them to previous ones.
The minister this week also released a media statement claiming that the technical support structure for the previous administrator, Freeman Nomvalo, amounted to around R16.5-million per annum.
The administrator before that, Randall Carolissen incurred technical support costs of around R20-million.
Mathebula’s submitted budget for 2026-27 for administration of the rest of the scheme has been adjusted upward by R10-billion.
According to his memo, the major cost drivers include staff salaries amounting to R325-million and computer services costing R64-million.
Under Mathebula’s administration, consultants will score close to R200-million, which, according to him, is a result of “ongoing SIU investigations, legal and audit-related costs, as well as advisory services”.
The rest of the budget of R60-billion goes to funding for students. Universities get the lion’s share at R41-billion. TVET colleges will get R9.5-billion.
- NSFAS administrator Prof Hlengani Mathebula requested a R35-million increase in his office’s budget to cover compensation costs, including four highly paid advisors earning R9.9-million annually in total.
- NSFAS plans to spend R200-million on consultants this financial year, driven by investigations, legal, audit, and advisory needs.
- Company secretary Bantu Mazingi recently resigned, citing governance issues within NSFAS.
- The overall NSFAS 2026-27 budget has been increased by R10-billion, with R60-billion allocated for student funding, primarily to universities (R41-billion) and TVET colleges (R9.5-billion).
- Minister Buti Manamela defended the increased administrative costs by comparing them to previous administrators’ support expenses and emphasized awaiting National Treasury approval.
NSFAS will also spend R200-million on consultants in this financial year.
Last week, company secretary Bantu
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“Since the initial submission of the budget approval request (in March), significant changes have occurred within NSFAS operations,” reads
Manamela disclosed the fees while admitting that these must first be approved by the finance minister. “National Treasury must be allowed to perform its statutory role, and the ministry will cooperate fully with that process,” he wrote in a piece published in Daily Maverick on Friday.
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