Fresh off a victory in the Gauteng High Court, Pretoria, the National Student Financial Aid Scheme (NSFAS) board has vowed to take action against any wrongdoing, misconduct or unlawful conduct that emerges in relation to the institution.
The court on Friday ordered the reinstatement of the NSFAS board pending the outcome of an application to set aside the appointment of administrator Hlengani Mathebula.
Judge Etienne Labuschagne delivered the ruling on Friday, putting on hold Minister Buti Manamela’s decision in May to place the aid scheme under administration in terms of section 17A(1)(b) of the NSFAS Act, following what the minister described as a prolonged period of intervention attempts and assessments.
Labuschagne found that Manamela had failed to properly consult the NSFAS board before appointing Mathebula, denying board members a meaningful opportunity to raise concerns about his suitability for the position.
The application was brought by seven board members.
Manamela said he is giving the judgment urgent consideration and has sought legal advice on its implications, including the available legal remedies and the appropriate steps to be taken.
“In the meantime, the department will take all necessary steps to ensure the continued effective functioning of NSFAS and, above all, that there is no disruption to student funding and other critical NSFAS functions,” he said.
In a statement issued after the ruling, NSFAS said it would take appropriate action where wrongdoing was identified.
“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 statement read.
“The Board further reaffirms its commitment to working constructively with the Minister of Higher Education and Training and all relevant stakeholders in addressing the challenges facing NSFAS and the broader higher education sector. As the matter remains before the courts and Part B of the proceedings is still pending, the NSFAS Board considers it inappropriate to comment further at this stage.”
The court’s decision comes on the heels of a parliamentary Portfolio Committee on Higher Education and Training meeting where Mathebula was grilled over his use of hired cars and hotel stays.
Mathebula has been travelling from Limpopo, where his primary residence is, to Cape Town, where the NSFAS head office is located.
He was also questioned about why he had not sought approval from his political principal, Manamela, for the remuneration packages of the four advisors he brought on board, at a cost of R9.9 million.
He was further pressed to explain why two of the advisors were paid through invoices issued by their companies rather than through the NSFAS payroll.
While Mathebula told the committee that the arrangement had been made on advice he received, NSFAS's Waseem Carrim distanced himself from the payments.
“I want to put it on record that I was not consulted as the CFO. If I had been consulted, I would have advised that the manner in which it is being paid is not consistent either with the founding legislation or the PFMA,” he said.
EFF MP Sihle Lonzi said Mathebula’s actions amounted to blatant criminality.
“Part of the reason these people were not getting salaries is because they may be getting salaries in other state entities, and if you know the law, you cannot be paid twice by two organs of the state. But because they want to hide that they are receiving payments elsewhere, they smuggled invoices to be paid as companies. It’s blatant criminality what we are dealing with, Chair,” Lonzi said.
Speaking on Friday, the chair of the committee, Tebogo Letsie said he hoped the department will not challenge the decision.
“We shall await the minister to make a determination. We also hope the ministry will not move to appeal the decision of the courts as it is almost impossible to overturn an interim judgment,” he said.
ntsikelelo.qoyo@nationalmg.co.za