Eastern Cape Principal Returns to School Amid R1 Million Spending Allegations

An Eastern Cape school principal has returned to work after spending 11 months on suspension amid allegations that more than R1 million in school funds was used for personal expenses.

Mihlali Makhalima, the principal of Ulwazi High School in Mdantsane, returned to his position despite still facing an internal disciplinary process.

The case has raised questions about how allegations involving school finances are being handled by the Eastern Cape Education Department.

The department says its investigation and internal processes must be completed before criminal charges can be considered.

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Principal accused of using school bank card for personal spending

Makhalima has been accused of using the school’s bank card for expenses that were allegedly unrelated to the school’s operations.

According to Eyewitness News, the alleged spending included payments at luxury restaurants, a car wash and a so-called “Blesser” club, as well as large cash withdrawals.

A previous report by EWN said almost R250,000 was allegedly spent on high-end dining, while around R450,000 was withdrawn from various ATMs.

Another approximately R200,000 was reportedly withdrawn from grocery stores.

The allegations remain unproven and are subject to the ongoing disciplinary process.

DA questions decision to allow principal back

The decision to allow Makhalima to return to school has drawn criticism from the Democratic Alliance in the Eastern Cape.

DA provincial education spokesperson Horatio Hendricks questioned why the principal had been allowed back into the school environment while the allegations had not yet been resolved.

Hendricks argued that the department should take stronger action while the matter is being investigated.

The controversy has put renewed attention on financial accountability in public schools and the responsibility of education authorities to safeguard money intended for learners and school programmes.

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Education department defends its approach

The Eastern Cape Education Department has rejected suggestions that it is simply allowing the matter to disappear.

Department spokesperson Malibongwe Mtima said the investigation needs to be properly completed before the department can consider referring the matter to the Commercial Crimes Court.

The department’s position is that its internal processes must first be exhausted and that the investigation needs to be sufficiently strong to support any future criminal proceedings.

The department has therefore not yet laid criminal charges against Makhalima, according to EWN’s reporting on the matter.

No criminal case has been opened yet

As of the latest reports, the Eastern Cape Education Department had not opened a criminal case against Makhalima.

This means the allegations remain within the disciplinary and investigative process at this stage.

The department has stressed the importance of ensuring that the investigation is comprehensive before taking further action.

The case illustrates the distinction between an internal disciplinary investigation and criminal prosecution: allegations can be investigated internally while a decision on criminal charges remains pending.

School funding remains a wider concern

The controversy comes against the backdrop of wider concerns over education funding in the Eastern Cape.

In August, the Makhanda High Court declared the Eastern Cape Education Department’s decision to withhold 33% of public-school funding unlawful and unconstitutional after an application by the Makhanda Circle of Unity and several School Governing Bodies.

According to SABC News, the court order followed years of concerns over school funding in the province.

The department subsequently agreed to consult schools before undertaking certain central procurement processes.

The separate funding dispute highlights why questions around the management and use of money allocated to schools remain particularly important in the province.

What happens next?

The disciplinary process against Makhalima is expected to continue while the education department completes its investigation.

The department has indicated that it wants to ensure that the evidence is sufficiently strong before taking any criminal matter forward.

For the school community, the central question remains whether the allegations will ultimately be substantiated and what consequences may follow if wrongdoing is established.

The matter also raises broader questions about financial controls, accountability and oversight within public schools.

Everyday Mzansi will continue monitoring developments as more information becomes available.

Important: The allegations against Mihlali Makhalima have not been proven. He remains entitled to due process, and no finding of criminal guilt has been made against him.