National Student Financial Aid Scheme (NSFAS) board chairperson Dr Karen Stander has resigned with immediate effect, citing a “toxic” work environment marked by racism, bullying, intimidation and personal threats.
In a letter addressed to minister of higher education Buti Manamela, Stander said she could no longer fulfil her duties “effectively and in good conscience” due to the worsening conditions within the board.
“Regrettably, 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,” she said.
Stander said the situation had spilt over into her personal life.
“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.
She expressed the hope that her resignation would pave the way for greater stability within the organisation.
“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. Leadership is as much about context and trust as it is about technical competence, and a new chair may provide the cohesion and stability that the organisation urgently needs.”
Stander, who was appointed as NSFAS chairperson earlier this year by then-higher education minister Dr Nobuhle Nkabane, said her decision to step down was made “after much reflection” and stemmed from her commitment to ethical governance.
“This decision has not been made lightly but arises from a profound sense of duty to the principles of governance, transparency, and ethical leadership that underpin our public institutions,” she said.
She emphasised that her concerns were purely governance-related and not personal.
“The concerns I raised during my tenure were never personal nor directed at any individual. They were strictly governance-related observations made in good faith.
“I acknowledge that the process of escalation may have been perceived by some as abrupt or ‘premature,’ but it was guided solely by my fiduciary duty as chair to uphold the integrity of NSFAS’s governance systems,” she said.
Stander also defended her correspondence with the department, saying it was intended to ensure accountability and institutional integrity.
“My correspondence and actions were aimed at protecting the institution, ensuring accountability and strengthening oversight never at discrediting or defaming any individual,” she said.
Stander commended current and former leaders of the higher education sector, saying they were motivated by a genuine desire to serve students.
“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,” she said.
She also praised the acting CEO and the department’s senior officials for their dedication under difficult circumstances.
“I wish to record my appreciation to the deputy director-general and director-general of the department of higher education and training, whose support in recent months has been invaluable,” she said.
Stander described her resignation as “not an act of defiance but one of conscience”.
“Leadership must sometimes make way for renewal when institutional trust and collaboration have broken down. I remain committed to the mission of equitable student funding,” she said.
Her resignation comes just two months after she publicly admitted that NSFAS’s information and communications technology systems were severely flawed and posed “cybersecurity risks”.
“The organisation’s ICT systems are misaligned with business requirements and lack integration,” she said at the time.
Stander warned that the system’s weaknesses could have “potentially disastrous consequences” given the billions of rand NSFAS handles annually.
She also highlighted deeper structural problems within the scheme, including leadership instability, reputational damage and widespread dysfunction.
“There is an ongoing blame game between all the organisations essential to NSFAS’s functioning, with everyone blaming everyone else for overcrowding, fraudulent claims for ghost students, payment delays and non-compliance with student accommodation standards,” she said.
“Moreover, leadership instability spanning nearly a decade has contributed to organisational turbulence and breakdowns.”
Stander’s resignation marks yet another chapter in the ongoing turmoil at NSFAS, which has faced years of governance crises, administrative disruptions and student protests over delayed payments.
TimesLIVE
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