To say last week was a bad week for Buti Manamela, the higher education & training minister, would be a gross understatement.
First, his appearance before the portfolio committee on higher education was disastrous. He seemed woefully unprepared, out of depth and inept. Even the ANC, his party, struggled to protect him from embarrassment. He didn’t seem to know how many advisers Hlengani Mathebula, the administrator of the National Student Financial Aid Scheme (NSFAS), had hired.
In the gruelling session before MPs, he also conceded to not having consulted Enoch Godongwana, his powerful finance colleague, about the salary Mathebula ought to be paid in his 24-month contract as administrator.
Most South Africans reluctantly gave Manamela the benefit of the doubt when he dissolved the NSFAS board and appointed an administrator, but this cautious support appears to have been misplaced.
Manamela, a member of the SACP and a long-serving deputy minister, overlooked fairly basic red flags about his choice of administrator.
Mathebula’s previous job in the public service dented his long track record. He attracted adverse findings from the Nugent commission, which probed governance and administrative issues at the South African Revenue Service (Sars). He was part of Tom Moyane’s executive, which collapsed the Large Business Centre and turned Sars into a docile tax collector.
This isn’t only Manamela’s blame to shoulder. His advisers and officials ought to have picked up these concerns, including the unprocedural approval of Mathebula’s remuneration and that of his advisers.
Even more concerning is the high court ruling that capped Manamela’s bad week in the office. The court ruled that Manamela’s decision to dissolve the board of NSFAS — and the resultant decision to appoint an administrator — was unlawful.
Manamela’s rationale at the time was based on an adverse audit finding and the fact that the board, which had lost both its chair and deputy, had become inquorate and was therefore unable to carry out its oversight role.
The drama was apparently triggered by disagreements over who should be appointed as permanent CEO of the agency that disburses financial aid to millions of needy South Africans in higher education institutions. The board’s preference was different from the minister’s. With the appointment of an administrator, this crucial decision is paused for 24 months.
Over the weekend, Manamela issued a terse statement saying he is seeking urgent legal advice on the court’s ruling. The ANC-led higher education committee in parliament has already pronounced itself on the matter. The committee has sensibly asked the minister to abide by the court’s ruling.
The implication of this is the return of the old board or, at least, the seven remaining directors who litigated their dismissal.
We should hold no brief for these members. The students’ funding issue must be resolved. The preference would have been for universities to directly administer these funds. But their administrative capacity leaves much to be desired.
In the circumstances, the board should appoint an interim CEO to oversee the day-to-day running of the organisation’s affairs. This will free the board to carry out the all-important assignment of recruiting a full-time CEO.
In the meantime, the minister should focus on filling the other vacancies on the board.
It’s hard to think that NSFAS can decisively resolve all the backlogs in student aid before the end of the academic year. Its board — with Manamela’s support — should approach businesses for help clearing the backlogs.
Business Day
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