By Lehlohonolo Lehana.
The National Student Financial Aid Scheme (NSFAS) board, chair Dr Karen Stander has resigned citing, work environment marked by racism, bullying, intimidation and personal threats at the entity.
In her resignation letter, Stander cited a “toxic” work environment marked by “racism, bullying, intimidation and personal threats”.
Stander stated that she could no longer effectively and conscientiously perform her duties due to the deteriorating 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,” said Stander.
She added: “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.”
Minister of Higher Educations Buti Manamela, admitted that Stander told him that NSFAS faces challenges that need to be addressed.
“The chair has resigned. She has given me reasons why she’s resigned and some of those, if further substantiated, may necessitate an investigation … W’’ll definitely do so,” said Manamela.
Stander was appointed on 18 February 2025 by Dr Nobuhle Nkabane, the then minister of higher education and training, after the previous board was dissolved by Minister Blade Nzimande and the entity was placed under administration.
Manamela said that this resignation was concerning for him. “Anybody who’s steering a ship that we want to stabilise and they resign, it’s obviously a loss. I think it was quite worrying, but also a symbol of concerns about a structure … She expressed to me what her concerns were. She framed them as key challenges that are facing the institution.”
Aside from the shocking resignation of Stander, NSFAS has been plagued with issues of budget shortfalls despite receiving funds of R13.3-billion to support 34,000 students with blocked registrations and second-semester registrations of 15,000 students, late payments to landlords and issues with an irregular board.
The Minister reaffirmed the department’s commitment to support NSFAS in fulfilling its core mandate, which is to serve students effectively and ensuring that public resources are managed with integrity.
