The Further Education and Training Colleges Amendment Bill, 2011; the Higher Education Laws Amendment Bill, 2011; and t

1. 1 The Further Education and Training Colleges Amendment Bill, 2011; the Higher Education Laws Amendment Bill, 2011; and the Skills Development Amendment Bill, 2011 HIGHER EDUCATION SOUTH AFRICA (HESA) SUBMISSION August 2011

2. HESA submission regarding� Higher Education Laws Amendment Bill, 2011 National Financial Aid Scheme Act, Act 56 of 1999 Further Education and Training Colleges Amendment Bill, 2011 2

3. 3 Higher Education Laws Amendment Bill, 2011: Section 27 of Act 101 of 1997 We support the objective of the clauses aimed at ensuring combatting conflict of interest and corruption. We have taken note of the submission of the University of Cape Town and support that submission which we do not intend to repeat in this submission, save to make the points that As framed the clauses will have unintended effects; Students and members of Council committees, as well as Council members need to be covered by the new provisions;

4. 4 Higher Education Laws Amendment Bill, 2011: Section 34 of Act 101 of 1997 HESA does not support the proposed sub-section 34(4) and 34(5) where it will inhibit the institution from using a patented product wherein a member of staff may have a financial interest; employing an individual whose spouse may have a financial interest, albeit an indirect interest. However, in recognising the dangers, institutional policies and procedures must safeguard the institution

5. 5 National Financial Aid Scheme Act, Act 56 of 1999: Section 4A The insertion of Section 4A is not supported The powers granted to the Minister of Higher Education and Training would usurp the function of an independent juristic person � the NSFAS Board 4A(1) may therefore be seen as compromising the independence and integrity of the Board 4A(2) brings into question the principles of good corporate governance and fair administrative action where the Board is not provided with an opportunity to make representation, and to implement remedial action within a specified time frame, before unilateral determinations are made in terms of the Board members 4A(5) should limit the term of the Administrator to not more than 2 years, for the provision to be in line with section 17A(1) and (2)

6. 6 National Financial Aid Scheme Act, Act 56 of 1999: Section 4B While 4B(3) makes provision for submission from the Board prior to the appointment of an Administrator, at that time directive has already been issued. The Board should be able to make submissions prior to the issuing of directives Further, the Minister is not required to furnish reasons for his conclusions upon receiving such representation, which calls into question the fairness and transparency of this process

7. 7 National Financial Aid Scheme Act, Act 56 of 1999: Section 7A The Minister is given expansive powers to dissolve the Board at his discretion, and to appoint an Administrator. We are concerned about the need for fairness and the lack of transparency and accountability. Notwithstanding this HESA supports the power of the Minister to appoint and remove Board members, on the condition that Provision is made for due process in the case of non-performance; Guidelines regarding expectations and conduct must be documented, against which Board members are to be evaluated 7A(1) assumes that the Administrator and the Board can operate concurrently. The HE sector recommends a revision to reflect that the Minister may consider dissolution of the Board even if the resignations are less than 75%

8. The Further Education and Training Colleges Amendment Bill, 2011 8

9. The Further Education and Training Colleges Amendment Bill, 2011 9

10. The Further Education and Training Colleges Amendment Bill, 2011 10