Principal returns despite ongoing R1m school funds probe

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Joined: Aug 2026

The principal of a no-fee school accused of squandering more than R1m meant for school meals, learning materials and maintenance on booze, fuel, fancy restaurants and other luxuries is back at school.

Mihlali Makhalima returned to Ulwazi High School in Mdantsane, East London, this week after nearly 11 months of precautionary suspension.

Eastern Cape DA spokesperson Horatio Hendricks said he would refer the allegations concerning Makhalima and Ulwazi High School to the Hawks tomorrow for independent assessment and, where warranted, investigation..

Hawks spokesperson W/O Ndiphiwe Mhlakuvana said: “We don’t have anything on our side; we can’t comment.”

Last year, the Sunday Times reported that Makhalima, who had over the years boosted the matric pass rate at the school, had been placed on precautionary suspension by the Eastern Cape education department, which accused him of raiding the school’s coffers.

The Sunday Times learnt about his return after receiving a phone call from a concerned parent.

The department has decided that the principal will return to work and continue performing curriculum-related duties. However, all financial responsibilities and delegations will be withdrawn pending the conclusion of the investigation—  Mali Mtima, department spokesperson

“The principal is back at school, and some parents are not happy. What is going to happen now? Is he going to pay the money back? Is he not supposed to be arrested?” asked the caller.

Parents contacted by the Sunday Times were reluctant to speak.

Bank statements seen by the Sunday Times revealed that in the 16 months to April last year, almost R250,000 was spent at upmarket eateries including Grazia Fine Food & Wine and La Grato in East London.

A further R450,000 in cash was withdrawn from ATMs, while R226,000 was withdrawn from tills at grocery stores and through other cash-back transactions.

The cash withdrawals, averaging more than R42,000 a month, have no corresponding expenditure records or justification.

(Nolo Moima) Hundreds of other payments are listed on the bank statements, including to Hungry Lion, Shoprite, PEP Stores, KFC, Boxer, Superspar, the Ekoneni Lounge bar, Devotions Liquor, car washes, hardware stores and butcheries. All were made with a debit card linked to the school account, into which state grants are paid.

Department spokesperson Mali Mtima said that, following the applicable labour-relations processes, the department decided to lift the suspension and allow Makhalima to return to the school.

He said his responsibilities would, however, be limited to curriculum-related activities until the investigation had been concluded.

Mtima said Makhalima had not paid back the money because the investigation was still under way.

“This means his case has not been concluded yet; we will await its outcome, including the recommendation. Following a review of the matter, the department has decided that the principal will return to work and continue performing curriculum-related duties. However, all financial responsibilities and delegations will be withdrawn pending the conclusion of the investigation,” said Mtima.

The lifting of his precautionary suspension is not an exoneration. It exposes the Eastern Cape department of education’s failure to conclude a serious investigation within a reasonable period—  Horatio Hendricks, Eastern Cape DA spokesperson

Hendricks raised concerns that, nearly 11 months after the suspension, the department had still not concluded its investigation.

“The lifting of his precautionary suspension is not an exoneration. It exposes the Eastern Cape department of education’s failure to conclude a serious investigation within a reasonable period,” said Hendricks.

He said although the department had confirmed that Makhalima would perform curriculum-related duties only, while his financial responsibilities and delegations remained withdrawn, the restrictions “cannot substitute for a completed investigation and a clear finding”.

He said the department should not allow allegations involving money intended for vulnerable learners to drift indefinitely.

Hendricks said he had also written to MEC David Gade demanding the full status of the departmental investigation, the reasons for the prolonged delay, details of the independent investigator, firm deadlines for completion and confirmation of all restrictions applying to Makhalima’s return.

“The DA is not declaring Makhalima guilty. He remains entitled to a fair process and a determination based on evidence. Learners and parents are equally entitled to know whether money intended for their education was misused and whether those responsible will face consequences.

“By allowing this investigation to drag on, the department is denying Makhalima, learners, parents and staff the certainty and closure that a fair process should provide. Where wrongdoing is established, the department must recover the money, institute disciplinary action and ensure that any criminal conduct is prosecuted,” said Hendricks.

Makhalima had not responded to inquiries at the time of going to print.

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