Buti Manamela Acknowledges NSFAS Chair’s Resignation Amid Governance Scandal

In a statement released on Monday, Minister Manamela confirmed receipt of Dr Stander’s resignation letter, describing it as “deeply troubling.”

Minister of Higher Education and Training, Buti Manamela, has formally acknowledged the resignation of Dr Karen Stander, Chairperson of the National Student Financial Aid Scheme (NSFAS) Board. Dr Stander’s sudden departure has sent shockwaves through the higher education sector, coming amid allegations of a deeply troubled governance environment within one of South Africa’s most crucial student funding institutions.

Allegations of Toxic Governance at NSFAS

In a statement released on Monday, Minister Manamela confirmed receipt of Dr Stander’s resignation letter, describing it as “deeply troubling.” The letter reportedly contains serious allegations of bullying, intimidation, racism, and threats to personal safety within NSFAS. These claims point to a highly toxic and dysfunctional internal environment, raising concerns about the organisation’s governance and leadership culture.

“I am deeply concerned by the gravity of the issues raised by Dr Stander. These matters warrant serious attention, and I will engage thoroughly before determining the necessary course of action,” said Manamela.

Urgent Meetings Scheduled to Address the Crisis

The Minister announced that he would hold a one-on-one meeting with Dr Stander on 3 November 2025 to discuss the allegations in detail. Following this, a pre-scheduled meeting with the entire NSFAS Board will proceed on Wednesday, 5 November, where governance issues, accountability, and organisational ethics will be at the forefront of discussions.

Manamela stressed that the department intends to engage comprehensively with NSFAS leadership to address the crisis and restore stability. “NSFAS plays a vital role in expanding access to higher education, and we must ensure that it operates in a manner that is ethical, transparent, and accountable,” he added.

A History of Turmoil at NSFAS

The latest developments come amid a turbulent period for NSFAS, which has faced multiple governance and operational crises over recent years. The institution has struggled with leadership instability, allegations of corruption, poor service delivery, and funding disbursement delays, all of which have eroded public confidence.

In 2023 and 2024, NSFAS faced parliamentary scrutiny and student protests over delayed allowances and irregular appointments of service providers for the direct payment system. The resignation of its chairperson now adds to the list of governance setbacks, underscoring the urgent need for structural reform and stronger oversight.

Analysts suggest that Dr Stander’s allegations — especially of racism and intimidation — highlight not just individual grievances but a deeper institutional culture problem that could compromise NSFAS’s mandate to serve millions of financially disadvantaged students.

Department Reaffirms Support for Students

The Department of Higher Education and Training reiterated its commitment to stabilising NSFAS and ensuring that student support remains uninterrupted despite the leadership crisis. “The department remains committed to ensuring that NSFAS fulfills its core mandate — to serve students effectively and to manage public funds with integrity,” the Minister’s office stated.

Officials also noted that further communication will be released after the Minister’s consultations with both Dr Stander and the full Board, with potential outcomes including a review of governance structures or an independent inquiry into the allegations.

Broader Implications for Higher Education

NSFAS, which funds over a million tertiary students annually, is a cornerstone of South Africa’s higher education system. Its stability is critical to ensuring equitable access to universities and technical colleges for students from low-income backgrounds. Any dysfunction within the institution, experts warn, risks undermining the national goal of inclusive education.

Stakeholders, including student unions, civil society groups, and higher education analysts, have already called for transparency in how the department handles Dr Stander’s allegations, urging swift action to protect the integrity of NSFAS.

As the situation unfolds, Minister Manamela’s leadership will be closely watched. His response in the coming days is expected to set the tone for how the government addresses accountability and governance reform within one of its most vital public institutions.