Dr. Karen Stander resigns from the NSFAS board chairperson with immediate effect. Image credit: Unisa.
(The Post News)– The Chairperson of the National Student Financial Aid Scheme (NSFAS), Dr. Karen Stander, has resigned from her position, citing in her notice to the Minister of Higher Education, Science, and Innovation a series of deeply concerning issues that she said rendered her continuation untenable.
In her resignation letter, she detailed that the Board had become a “toxic” environment where bullying, intimidation, and racism were tolerated and effected through structural and interpersonal dynamics. She wrote that these hostile behaviors were not abstract or incidental but had “spilled over into my personal life” with threats and concerns for the safety and well-being of her family.
“Regrettably, the environment within which the board has operated has become increasingly toxic, characterized by bullying, intimidation, racism, and hostility. These conditions have made it impossible to continue discharging my duties effectively and in good conscience,” she said.
The letter emphasized that her decision was driven not by personal grievance but by principle; she felt she could no longer in good conscience carry out the duties of Chair under conditions that compromised ethical governance, accountability, and transparency. In her letter, Dr. Stander recounted attempts to effect change: she described how the Board under her leadership had sought to implement governance reforms, strengthen oversight, and stabilize operations of the scheme.
Dr. Stander highlighted that the organizational culture failed to align with those reforms. More specifically, she noted that despite the Board approving new policies, instituting audit and risk structures, and submitting strategic documents on time, the toxic internal dynamics rendered those efforts ineffective.
The letter stated that “leadership is as much about context and trust as it is about technical competence.” She used this phrase to signal that the behavioral environment within NSFAS had become a barrier to progress. She further documented that repeated warnings to management and the organization about weaknesses in ICT systems, data integrity, internal controls, and the integration of processes were raised, but that the institutional response was inadequate.
The former board chairperson insisted, exposing the scheme and students to operational risk and undermining its mandate of providing financial aid reliably.
Ultimately, the combined effect of governance strain, systemic vulnerability, and personal risk led her to conclude that her position was no longer tenable. “The safety and well-being of my family must prevail,” she wrote. She added that her resignation was intended to open the way for a leader who could rebuild trust, restore institutional health, and empower the scheme to fulfill its mandate without the baggage of the existing culture.
The Minister of Higher Education, Buti Manamela, told Jacaranda these issues require significant consideration, and he will fully engage before deciding on the appropriate course of action. The department must make sure that NSFAS functions in an ethical, open, and accountable manner since it is essential to increasing access to higher education.
NSFAS has not yet publicly responded to the claims in the resignation letter.
Impact of Dr. Stander’s Resignation
The implications of the resignation are significant. NSFAS is tasked with disbursing billions of rand in student funding and managing allowances for accommodation, tuition, living costs, and more.
The departure of the Board Chair under such circumstances raises serious questions about institutional governance, stability, and the ability of the Board to guide NSFAS through its ongoing administrative and operational challenges.
For students dependent on the scheme, the rumors of dysfunction could erode confidence and increase anxiety about payments and support. Dr. Stander’s exit from NSFAS underscores the severity of internal governance issues facing the scheme.
Her letter paints a picture of an institution caught between its public mandate to support students and internal constraints of culture and capacity.
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