The Eastern Cape Education Department has not laid criminal charges against a principal accused of misusing more than R1 million in school funds, leaving parents and community members demanding answers as the educator returns to work.
Mihlali Makhalima, principal of Ulwazi High School in Mdantsane, resumed duties today after an 11-month suspension with full pay. He remains subject to an internal disciplinary process, which the department says has not yet concluded.
Allegations and amounts
According to the department’s account, the school’s bank card was used for a number of personal expenses. The alleged transactions include:
- R250,000 spent at upmarket restaurants;
- R450,000 withdrawn in cash from ATMs;
- R200,000 recorded as withdrawals from grocery stores.
Taken together, those items account for roughly R900,000; the department says the total amount allegedly misappropriated exceeds R1 million. The principal continues to face a departmental disciplinary hearing.
Why there are no criminal charges yet
Eastern Cape Education spokesperson Malibongwe Mtima told reporters the department has not forwarded the matter to the commercial crimes court because it needs to ensure the investigation is "watertight" before pursuing criminal action.
"For us to do anything, we need to ensure that the investigation that we have is watertight. We can’t send this case to the commercial crimes court without first finalising anything. We have to ensure the internal processes are exhausted, so that we have something tangible that won’t make us lose the case."
Mtima’s remarks underline the department’s position that internal disciplinary steps must be completed before external criminal proceedings are initiated. The department did not give a timeline for the conclusion of the disciplinary hearing.
Community and accountability implications
The case has raised concerns among parents and civil society about the pace and transparency of disciplinary and criminal accountability in the province’s education system. Schools in Mdantsane and similar townships rely heavily on limited public resources; alleged diversion of funds attracts sharp public scrutiny.
Critics argue that long suspensions on full pay can erode public confidence, particularly when there is no visible progress towards closure of the matter. Those concerns are amplified when a principal is allowed to return to the workplace before criminal charges are considered or disciplinary outcomes finalised.
Practical information for parents and community members
- Parents seeking clarity on school governance and financial controls should request copies of the school’s audited statements and the School Governing Body’s (SGB) financial reports.
- Concerns about alleged financial misconduct can be reported to the provincial Education Department’s district office and to the South African Police Service for investigation if there is prima facie evidence of criminality.
- Community members can demand timelines from the department on the status of disciplinary and criminal processes and lodge complaints with the provincial education oversight structures if they feel there is undue delay.
Financial allegations at a glance
| Category | Alleged amount |
|---|---|
| Dining at upmarket restaurants | R250,000 |
| ATM cash withdrawals | R450,000 |
| Grocery-store withdrawals | R200,000 |
| Alleged total | More than R1,000,000 |
The department’s priority, it said, is to ensure that any case referred to the commercial crimes court is supported by a complete, robust internal file. That approach reflects a caution to avoid procedural errors that could jeopardise prosecution.
Until the disciplinary hearing is concluded and any decision taken on criminal referral, the principal remains employed by the department. The case will be watched closely by parents, unions and governance watchdogs keen to see clear timelines and stronger safeguards to protect school finances in the Eastern Cape.
Further developments will depend on the outcome of the disciplinary process and whether the department proceeds to open a criminal case with the SAPS and the commercial crimes court.
