Mihlali Makhalima faces suspension as principal allegedly drains school funds in Mdantsane Eastern Cape spending scandal

A storm has hit Ulwazi High School in Mdantsane, East London, after allegations emerged that its principal, Mihlali Makhalima, is linked to the misuse of more than R1 million meant for essential school services.

The school, which operates as a no-fee institution in the Eastern Cape, is supposed to use government grants for meals, learning materials, and maintenance.

Instead, investigators from the provincial education department now allege that large portions of those funds were diverted into personal and questionable spending.

The claims have triggered outrage among parents, education officials, and political observers who say the case reflects deeper problems in school financial oversight in parts of South Africa.

Where the Money Allegedly Went

Bank records reportedly reviewed during the investigation show a pattern of spending that raised serious questions.

Over a 16-month period, nearly R250,000 is said to have been spent at high-end restaurants in East London, while around R450,000 was withdrawn in cash from ATMs.

Another R226,000 was taken out through store withdrawals and cash-back transactions.

Authorities say these withdrawals have no clear documentation explaining how the money was used.

Beyond that, hundreds of transactions were linked to everyday retail outlets such as Shoprite, KFC, Boxer, Pep Stores, and even liquor outlets and car washes—all charged to a debit card connected to the school account where state funding is deposited.

School Feeding Programme Under Scrutiny

The allegations go beyond financial records and into the daily reality of pupils.

Ulwazi High School, which educates about 1,200 learners, is part of South Africa’s National School Nutrition Programme (NSNP), designed to provide at least two meals a day.

But students told investigators a very different story—saying they often receive only one meal and sometimes go without fruit for long periods.

Some described meals like samp with chicken liver or rice with vegetables, while others said items listed on the official menu rarely appear in practice.

The school has also reportedly accumulated debts of over R375,000 linked to the feeding programme.

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Governance Questions and Financial Controls

One of the most serious concerns raised in the investigation is the use of a school debit card, which is prohibited under South African school financial regulations.

The South African Schools Act requires schools to use proper electronic transfers with strict documentation, not open debit card systems.

The report further suggests the school lacks proper financial policies, procurement controls, and auditing procedures, leaving room for unregulated spending.

There are also claims that members of the school governing body may have received “tokens of appreciation” from school funds—something investigators say violates public finance rules.

Principal Responds to Allegations

Mihlali Makhalima has denied wrongdoing and offered explanations for some of the transactions.

He claims that some restaurant purchases were for long disciplinary meetings involving staff and governing body members, where meals were provided as part of school policy.

He also argued that some liquor store transactions were misinterpreted, saying they included butcher meat purchases rather than alcohol.

On the issue of bank cards, he stated they were no longer in use and that financial control rested with a committee rather than him directly.

Suspension and Official Action

Following questions raised by the investigation and media reports, the Eastern Cape Department of Education confirmed Makhalima’s suspension.

Officials say the case involves possible breaches of financial management laws and misuse of public funds intended for learners.

The department has also indicated that other officials and school governance structures may face scrutiny as part of a wider investigation.

Impact and Consequences

The allegations have shaken trust in school governance systems, especially in under-resourced communities where state funding is critical for survival.

If proven, the misuse of funds could deepen food insecurity for learners who rely on school meals as a primary source of nutrition.

It also highlights long-standing weaknesses in oversight within the education system, where some schools struggle with accountability despite receiving public funding.

Politically, the case adds pressure on provincial education authorities to tighten financial controls and enforce compliance more aggressively.

What’s Next?

Mihlali Makhalima is expected to face formal disciplinary proceedings while the investigation continues.

The education department is likely to expand its audit to include other schools in the region suspected of similar financial irregularities.

There is also growing expectation that criminal referrals could follow if evidence confirms deliberate misuse of public funds.

Civil society groups are pushing for stronger oversight of the NSNP to ensure school feeding programmes actually reach learners as intended.

Summary

A major scandal has erupted at Ulwazi High School in Mdantsane, where principal Mihlali Makhalima is accused of misusing over R1 million in school funds.

Investigators claim the money, meant for feeding learners and supporting education, was spent on restaurants, cash withdrawals, and personal expenses.

While the principal denies wrongdoing, authorities have suspended him and launched a deeper investigation into financial management at the school.

Bulleted Takeaways

• Ulwazi High School principal accused of misusing over R1 million in school funds
• Funds were meant for meals, learning materials, and maintenance
• Spending allegedly included restaurants, cash withdrawals, and retail purchases
• School linked to National School Nutrition Programme feeding 1,200 learners
• Learners report inconsistent meals and limited access to fruit
• Debit card use at school allegedly violated education financial rules
• South African Schools Act prohibits such financial practices
• Principal Mihlali Makhalima denies wrongdoing and offers explanations
• Eastern Cape Education Department has suspended the principal pending investigation
• Wider audit and possible criminal referrals may follow the case