Higher Education Minister Cancels Registration of Four Educor Institutions Over Compliance Failures

Higher Education Minister Blade Nzimande has taken a firm stance against the parent company of four private higher educational institutions, citing misleading representations and non-compliance issues. Addressing the media on Tuesday, Nzimande highlighted that the four institutions – City Varsity, Damelin, Icesa City Campus, and Lyceum College, all operating under Educor – claimed to have 50,000 students, but records show an actual enrollment of 13,096 for 2022.

Educor, a major player in the private education sector managing multiple brands and campuses, came under scrutiny for failing to provide audited financial statements for the 2021 and 2022 fiscal years. This failure led the Department of Higher Education to cancel the registration of the four institutions, as published in the Government Gazette by Director-General Nkosinathi Sishi.

The cancellation of the institutions’ registrations was a result of Educor’s persistent non-compliance with essential regulatory requirements. Notably, the four institutions failed to submit critical documents such as annual financial statements and tax clearance certificates, essential for proving financial viability per the Higher Education Act.

In response to the cancellations, Minister Nzimande outlined a phased approach for the affected institutions. City Varsity’s registration was immediately halted, preventing new student enrollments. Existing students at City Varsity must be phased out by the end of 2023, ensuring a structured exit process.

Nzimande expressed concerns over the operational dysfunction within the Educor entities, citing numerous student grievances and complaints left unaddressed. Key complaints included instances where students were allocated marks without their exams being properly evaluated, leading to a breakdown in academic integrity.

The Minister also shed light on sudden closures of institution sites due to financial woes, leaving students and staff stranded. Instances of staff striking over unpaid salaries and landlords evicting institutions for rent arrears were highlighted, painting a troubling picture of mismanagement.

Amid these compliance failures, Educor faces allegations of corruption which remain unanswered. Attempts by the Department to address these allegations have been met with silence from the institutions, further complicating the situation.

Looking ahead, Nzimande underlined the importance of safeguarding student interests, ensuring that affected staff have recourse through labor courts and mediation bodies. As the regulatory process unfolds, the fate of Educor institutions hangs in the balance, pending potential appeals or interventions to remedy governance and compliance deficiencies.