Higher Education Sector
Pretoria, South Africa – Four private higher education institutions, including City Varsity (Pty) Ltd, Damelin (Pty) Ltd, Icesa City Campus (Pty) Ltd, and Lyceum College (Pty) Ltd, have been deregistered by the Department of Higher Education and Training. The decision followed their failure to provide evidence of financial health as per the department’s requirements.
During a Pretoria media briefing on Tuesday, Higher Education, Science and Innovation Minister, Dr Blade Nzimande, affirmed the deregistration, citing non-compliance with registration regulations set forth in 2016 and the Higher Education Act. The cancelation reflects a decisive move by the government to enforce accountability and maintain the quality of education within the private sector.
Dr Nzimande detailed the institutions’ failure to furnish annual financial statements and tax clearance certificates for the fiscal years of 2021 and 2022. These documents were crucial in confirming their ongoing financial viability – a core condition for maintaining their registration as recognized education providers.
Despite their initial deadline of 26 September 2023 to lodge an appeal against deregistration, the Educor-managed institutions sought extensions, with the latest request aiming for 28 February 2024. This further delay comes amid mounting student grievances regarding quality of education, administrative incompetence, staff qualification doubts, and allegations of corruption and bribery.
Student complaints have been consistently reported, focusing on a range of issues including exploitation, non-payment of staff wages, and requests for refunds being ignored. These grievances extend beyond the decredited institutions to others under Educor’s umbrella, such as INTEC College (Pty) Ltd, Damelin Correspondence College (Pty) Ltd, and those institutions offering Sector Education and Training Authorities (SETA) accredited programmes.
The Minister highlighted the Higher Education Quality Committee’s withdrawal of accreditation for certain programmes across the Educor institutions, signalling consequences for non-compliance and failure to resolve ongoing issues.
In a startling revelation, Nzimande accused the institutions of inflating enrolment figures, where official data showed 13 096 students enrolled across Educor brands for 2022, as opposed to the 50 000 claimed by the institutions.
The consequences of mismanagement have had direct repercussions on students and staff. Several campuses, such as City Varsity in Braamfontein and Damelin branches across multiple cities, have abruptly ceased operation due to financial strain, resulting in evictions and staff walkouts over unpaid salaries.
The Minister’s address also shed light on earlier actions taken against Educor, with the Directorate: Registration of Private Colleges demanding responses to corruption allegations in January 2024. The lack of response has only served to increase scrutiny over the institutions’ operations.
Dr Nzimande outlined a plan for Educor to phase out currently enrolled students while ensuring that funds are returned to students where warranted. He addressed the challenges surrounding the transfer of credits and potential additional costs that may burden students as they seek to complete their education elsewhere.
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