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National Student Financial Aid Scheme Act, 1999 (Act No. 56 of 1999)

Chapter 2 : Establishment, Composition, Governance and Functions of NSFAS

4A. Intervention by Minister

 

1) The Minister may issue a directive to the board to take such action specified by the Minister if the NSFAS–
a) is in financial difficulty or is being otherwise mismanaged;
b) is unable to perform its functions effectively due to dissension among Board members;
c) has acted unfairly or in a discriminatory or an inequitable way towards a person to whom it owes a duty under this Act;
d) has failed to comply with any law;
e) has failed to comply with any directive given by the Minister under this Act; or
f) has obstructed the Minister or a person authorised by the Minister in performing a function in terms of this Act.

 

2) A directive contemplated in subsection (1) must state–
a) the nature of the deficiency;
b) the steps which must be taken to remedy the situation; and
c) a reasonable period within which the steps contemplated in paragraph (b) must be taken.

 

3) Before making a decision under subsection (1) the Minister must, subject to the Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000)–
a) give notice to the board of the intention to issue a directive;
b) give the board a reasonable opportunity to make representations; and
c) consider such representations.

 

4)
a) If the board fails to comply with the directive within the stated period, the Minister must dissolve the board and appoint an administrator to take over the functions of the board.
b) For the purposes of paragraph (a), sections 17A, 17B and 17C apply with the changes required by the context.

 

5) If the Minister appoints an administrator in terms of subsection (4), the administrator may perform all the functions of the board and an employee must comply with a directive given by the administrator.

 

6) The cost associated with the appointment of an administrator shall be for the account of the NSFAS.