The Eastern Cape Education Department (ECDoE) said it has not yet opened a criminal case against Mihlali Makhalima, the principal of Ulwazi High School in Mdantsane, who is accused of draining more than R1 million from the school’s accounts.
Department cites need for watertight internal inquiry
Makhalima returned to work this week after being suspended for 11 months. He remains the subject of an internal disciplinary hearing, but the ECDoE said it will not yet refer the matter to criminal investigators or the commercial crimes court.
“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,”
said Eastern Cape Education spokesperson Malibongwe Mtima.
Allegations detail luxury spending and large cash withdrawals
According to the department’s account of events, the principal is alleged to have used the school’s bank card for private expenses. The figures cited in the department’s summary of alleged transactions include:
- Nearly R250,000 on dining at upmarket restaurants;
- About R450,000 withdrawn in cash from ATMs;
- Approximately R200,000 withdrawn at various grocery stores.
Together, these amounts account for the department’s statement that more than R1 million was allegedly misappropriated.
Suspension and disciplinary process continue
Makhalima had been suspended with full pay for nearly a year while the inquiry proceeded. The departmental position is that internal processes must be completed before the matter is placed before criminal courts. The disciplinary hearing has not been finalised.
This approach reflects a commonly used sequence in public service misconduct cases: an internal disciplinary process runs first, and — if the department believes there is a criminal element — a criminal referral follows. The ECDoE’s statement indicates its concern about presenting a case strong enough for the commercial crimes court.
Local impact and governance questions
The case has provoked unease in Mdantsane. When a school’s administrative funds are diverted, learners can miss out on essential services and resources. Even as this investigation plays out, the department will face questions from parents and the community over financial controls at school level and how quickly alleged misconduct is escalated to criminal authorities.
| Item | Alleged value |
|---|---|
| Dining at restaurants | ~R250,000 |
| ATM cash withdrawals | ~R450,000 |
| Grocery store withdrawals | ~R200,000 |
| Total alleged | >R1,000,000 |
The ECDoE indicated the department is prioritising a thorough internal investigation to avoid procedural shortcomings that could undermine a criminal prosecution.
What comes next
With the disciplinary hearing unfinished, the timeline for any criminal referral remains unclear. The National Prosecuting Authority’s involvement would typically follow a formal criminal complaint and referral from the department or the police. The department’s emphasis on completing internal steps first suggests criminal proceedings, if any, will only commence once those steps are exhausted.
For parents and community members seeking clarity, the department’s public statements remain the primary source of confirmed detail. The ECDoE has not provided further comment about whether recovered funds or interim financial measures have been applied at Ulwazi High while the investigation continues.
As this matter develops, accountability for school finances and the speed at which suspected fraud is escalated will be central concerns for education officials and the Mdantsane community.
Reporting note: The department’s figures and the quoted statement are drawn from its public account of the investigation; Makhalima’s legal representatives and the school did not provide comment in the department’s summary.
