National Student Financial Aid Scheme Act, 1999 (Act No. 56 of 1999)Chapter 2 : Establishment, Composition, Governance and Functions of NSFAS4A. 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. |