The board chair of the National Student Financial Aid Scheme (NSFAS), Karen Stander, has resigned from the position, less than a year into a four-year term.
Stander was appointed by former higher education minister Nobuhle Nkabane in February as part of an overhaul of governance at the student aid scheme following allegations of corruption under the previous board.
Stander’s resignation could slow reforms and disrupt ongoing initiatives at the student aid agency. It throws the state-owned bursary provider into fresh turmoil as it struggles to disburse funds to millions of students from poor and working-class backgrounds.
The scheme has been plagued by scandals, including a botched direct-payment system and allegations of corruption involving service providers.
In her resignation letter to the minister of higher education, Buti Manamela, Stander cited a toxic work environment marked by bullying, intimidation, racism and hostility, highlighting deep cultural issues within the organisation.
“The environment within which the board has operated has become increasingly toxic, characterised by bullying, intimidation, racism and hostility. These conditions have made it impossible to continue discharging my duties effectively and in good conscience.
”In recent months, this hostility has also extended beyond the professional realm, creating a real and present danger to the safety and well-being of my family,” she said in her resignation letter to the minister.
“I genuinely believe that the current board, given a leader whom they respect and who fits more naturally within their social structures, may be better positioned to move NSFAS forward.
“It might appear to some that the former minister sought to shape NSFAS in a particular direction, but I do not believe this stemmed from malice. Rather, it reflected a genuine concern for society and the children we serve, an effort to steer a complex institution towards greater effectiveness and impact.
“Similarly, I believe that the acting CEO’s actions, though sometimes contested, have been driven by a deep love for his country and his commitment to the students who depend on this scheme.”
The higher education department spokesperson, Matsepo Seedat, said Manamela would meet with Stander in the coming week to discuss the contents of her resignation letter.
Just months earlier at a media briefing, Stander had outlined the staggering scope of NSFAS’s inherited problems, stating the board had taken over “an organisation facing significant challenges, including a collapse in financial and supply chain governance, compounded by the absence of a sustainable funding model”.
She had warned that “a critical trust deficit exists between NSFAS, higher education institutions, student bodies and students”, with “leadership instability spanning nearly a decade”.
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