Can new leadership finally fix NSFAS?

Yershen Pillay | image supplied

A new leadership has been appointed by the Higher Education Minister that could change the fortunes of deserving students.

The appointment of Dr Karen Stander as the new board chairperson and Waseem Carrim as the acting CEO of NSFAS is nothing less than groundbreaking. For the first time in its history, NSFAS is led by two people with a track record in leading high-performance organisations. Could this be a watershed moment in the history of NSFAS?

Making the right appointments

Minister Nkabane should be commended for her courageous leadership in making the right appointments based on ethical leadership and performance-based criteria.

She has displayed confidence in youth to lead at the highest levels. This is a trend that has delivered optimal results in many parts of the world, not least on the African continent.

Unfortunately, only a few ministers have had the courage to appoint younger leaders into senior leadership positions at large-scale entities.

Plagued by years of mismanagement and poor leadership

NSFAS is the largest entity in the higher education and training sector in terms of income size. A R52bn institution responsible for funding poor students from working-class backgrounds.

A bastion of hope for youth, the gargantuan institution has been plagued by years of mismanagement and poor leadership.

Even the former CEO of FirstRand, Sizwe Nxasana, struggled to lead the embattled state entity during his short stint as the former board chairperson in 2015. The institution has suffered from a lack of capacity and a dire need for more resources.

A silver lining in the dark NSFAS cloud?

However, the tide may have changed at the beleaguered institution. For the first time in its history, NSFAS is led by an experienced academic and a young CEO.

Dr Stander has over 13 years of experience in academia and a deep understanding of how public institutions function. She has a PhD in business management from the University of Pretoria and a wealth of experience in student affairs, innovation, and entrepreneurship.

Private sector leaders have a terrible track record in the public sector, especially at NSFAS. This is because of the nuanced dynamics involved in public sector entities such as the complex nature of stakeholder management.

On the other hand, NSFAS has been blessed with a young CEO from the youth movement. Carrim is the former CEO of the National Youth Development Agency (NYDA).

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He was once ranked as one of the top accountants in the country. He led the Nyda to nine consecutive clean audit outcomes and grew the Nyda from a R400m to R1.5bn entity. He knows how to manage both public-sector and private-sector stakeholders.

As a chartered accountant, he is more than capable of addressing the financial crisis at NSFAS. But accountants have a bad track record in leading public sector entities.

A focus on financial re-engineering without understanding the need to innovate and empower people has often been a shortfall of accountants in the c-suite.

Carrim has displayed his financial and leadership competencies at the Nyda over a sustained period. He holds two master’s degrees and is a member of the Board of the Small Enterprise Finance Development Agency. He has received numerous awards for his sterling leadership at the Nyda.

An experienced academic and a young CEO offer new hope

The youth and dynamism of Carrim complement the innovation and entrepreneurship of Stander. Most organisations fail because of poor leadership and bad management. The relationship between the board chairperson and the acting CEO will be pivotal to the success of NSFAS.

An experienced academic and a young CEO offer new hope and a breath of fresh air to an ailing organisation in need of change. The courage of Minister Nkabane to avoid the pressures of racially based appointments and non-performing private sector leaders should send a clear message - this is a government focused on performance.

Higher education needs NSFAS to work. The country needs NSFAS to work. We need an organisation that pays students on time. The new leadership of NSFAS could provide the skeleton key needed to unlock the true potential of this mammoth entity.

We often criticise the wrong appointments of ministers who fail to look beyond subjectivities and focus on what matters - a track record of high performance and results.

The facts suggest that the current board and CEO at NSFAS were appointed based on their ability to lead effectively. Let’s give credit where credit is due. A better future awaits our beloved student movement.