Eastern Cape principal under investigation for alleged misuse of over R1 million in school funds

A principal at Ulwazi High School is under formal investigation for allegedly misappropriating more than R1 million intended for school meals, learning materials, and maintenance, reportedly spending it instead on personal luxuries such as alcohol, fine dining, and fuel.

Principal Mihlali Makhalima allegedly used the school’s bank account to fund lavish personal expenses between January 2023 and April 2024. Financial records reviewed by investigators show transactions amounting to approximately R250 000 at restaurants and bars, R450 000 in cash withdrawals, and R200 000 in till cash-backs, Sunday Times reported

The funds in question were allocated through the National School Nutrition Programme (NSNP), which provides two daily meals to around 1 200 learners at the Mdantsane-based no-fee school. However, several pupils have reported that they often receive only one meal per day, with fruit and other essentials rarely included.

The Eastern Cape Department of Education has confirmed that the financial transactions violate provincial and national financial management policies. The department has suspended Makhalima pending the outcome of an ongoing investigation led by the district’s internal audit unit.

Department spokesperson Mali Mtima stated that the misuse of funds intended for learners’ welfare would be met with disciplinary and possible criminal action. “We take such matters very seriously. These are funds meant to feed children who depend on the school for nutrition. Mismanagement of this kind undermines the very purpose of public education,” he said.

The incident has reignited concerns about financial accountability and oversight within the province’s no-fee schools, particularly under the NSNP. Education analysts have noted that similar cases have emerged in other districts, raising questions about monitoring mechanisms and financial controls.

Community members and parents expressed frustration, saying that while officials investigate, learners continue to suffer the consequences. “Our children go to school hungry,” said one parent. “We trusted the school to care for them, but the system keeps failing us.”

The Eastern Cape Department of Education has promised to release a detailed report upon completion of the investigation and to strengthen oversight mechanisms to prevent future misuse of school funds.