The Organisation Undoing Tax Abuse (Outa) has called for the removal of Higher Education Minister Buti Manamela following his decision to place the National Student Financial Aid Scheme (NSFAS) under administration, describing the move as the result of preventable leadership failures.
In a statement released this week, Outa argued that the administration placement was not a decisive intervention but rather an admission that leadership had failed to act on clear warning signs.
“The placement of NSFAS under administration is not an isolated event. It is the culmination of a sustained failure to lead decisively,” the organisation stated.
Background to the crisis
Manamela was appointed minister in July 2025 after President Cyril Ramaphosa removed Nobuhle Nkabane from the position. Prior to this, Manamela had served as deputy minister since 2017, giving him close to a decade of institutional knowledge.
NSFAS had emerged from administration under Freeman Nomvalo in February 2025, with a new board appointed under the leadership of Dr Karen Stander. The organisation showed initial signs of recovery during this period.
However, Stander resigned on 2 November 2025, citing internal board tensions and interference in critical matters including the appointment of a permanent chief executive. At least three additional board members with financial expertise subsequently resigned, weakening the board’s governance capacity.
Outa stated that these vacancies were not filled with urgency, despite the clear risks of institutional instability.
Seta appointment concerns
The organisation also criticised Manamela’s handling of Sector Education and Training Authority (Seta) appointments. Board terms and chief executive contracts reached their five-year limit on 30 September 2025, a known governance milestone that required planning.
According to Outa, several chief executive reappointments raised concerns, including individuals associated with repeated audit qualifications and governance failures. The organisation submitted a list of 15 candidates for board chairperson roles, none of whom were contacted.
The appointments triggered two separate legal challenges by Outa and the EFF, raising questions about transparency and integrity in the selection process.
Concerns over new administrator
Outa has expressed concern about the appointment of Hlengani Mathebula as NSFAS administrator. Mathebula previously served at the South African Revenue Service (SARS) as chief officer for governance, international relations, strategy and communications, having been appointed by then-commissioner Tom Moyane in January 2016.
Mathebula was placed on precautionary suspension by SARS management on 31 July 2019 following the Nugent Commission of Inquiry into SARS governance failures. He left SARS on 26 August 2019 through a settlement agreement, meaning disciplinary processes were not concluded.
“At best this raises questions and at worst it signals poor judgement in a critical appointment,” Outa stated.
Broader systemic failures
The organisation noted that failures across NSFAS and the broader skills development ecosystem consume more than 50% of the department’s budget. It pointed to growing consensus that the Seta model has been failing to achieve its intended purpose for several years.
Research from Stellenbosch University’s Bureau for Economic Research in 2025 highlighted significant inefficiencies, and Ramaphosa publicly acknowledged the need for reform in March this year. However, Outa stated that the ministry has shown little urgency in responding.
Call for accountability
Outa concluded that systemic failure must translate into personal accountability, arguing that Manamela has had nearly a decade of institutional exposure and close to a year in the top role.
“South Africa’s higher education system cannot endure another cycle of instability, intervention and decline. It requires decisive, accountable and reform-driven leadership, which is currently absent,” the organisation stated.
The organisation has called on President Ramaphosa to remove Manamela from his position, stating that his continued tenure poses a risk to the stability and credibility of the sector.
