Higher education minister Buti Manamela has issued a notice of intent to cancel the registration of three major private higher education institutions.
Damelin, City Varsity and ICESA City Campus are to be deregistered after prolonged non-compliance with the Higher Education Act and related regulations.
The department of higher education and training confirmed in a statement that Manamela had considered submissions made by the institutions before taking the decision.
“Mr Buti Manamela has considered the submissions before him and has issued a notice of intent to cancel the registration of three private higher education institutions, City Varsity (Pty) Ltd, Damelin (Pty) Ltd and ICESA City Campus (Pty) Ltd,” the department said.
Department spokesperson Matshepo Seedat said the move followed a sustained pattern of regulatory breaches and was taken in the interest of protecting students and safeguarding the integrity of the higher education sector.
“This action follows a prolonged pattern of non-compliance with the Higher Education Act and the Regulations for the Registration of Private Higher Education Institutions. The decision is therefore undertaken in the interest of protecting students and upholding the integrity of the sector,” said Seedat.
She said the department had a legal obligation to ensure that private institutions provided quality education and demonstrated financial and operational sustainability.
Seedat said the decision was primarily based on the institutions’ failure to submit complete statutory annual reports despite multiple extensions being granted.
All three institutions had failed to submit their 2024 annual reports even after an extension until June 30 2024 and a final remedial deadline of June 6 2025.
In addition the institutions failed to demonstrate financial and operational sustainability.
According to the department, they did not provide key documentation required by the registrar including audited annual financial statements, proof of financial surety or guarantees, Sars tax compliance certificates and occupational health and safety compliance documentation.
The department has also received confirmation that City Varsity and ICESA City Campus have ceased operating altogether.
“The department has received reliable confirmation that two of the institutions, namely City Varsity (Pty) Ltd and ICESA City Campus (Pty) Ltd, have ceased operating, and are therefore not providing higher education within the meaning of the act,” said Seedat.
The notice of intent to cancel the registrations will be published in the Government Gazette in accordance with section 63(a) of the Higher Education Act.
Seedat said the affected institutions would be given an opportunity to make representations as required by law.
“The department will ensure that students affected by this process are supported through appropriate academic and administrative arrangements,” she said.
The department reiterated its commitment to protecting students from being enrolled at institutions that cannot demonstrate sustainability, ensuring that higher education providers operate within the legal and quality assurance framework and acting decisively to uphold the integrity of South Africa’s higher education system.
“Institutions that fail to meet their legal and educational obligations cannot be allowed to compromise the futures of the people they serve,” the department said.
The latest development follows years of regulatory concerns around Damelin and its parent company Educor Holdings, which owns several private education brands including City Varsity, ICESA and Intec College.
Four years ago, the department of higher education and training and the Council on Higher Education considered stripping accreditation and registration of some of Damelin’s programmes after complaints from students about poor-quality education dating back several years.
Damelin operates 14 campuses nationwide while Damelin Correspondence College presents itself as a “digital-first” virtual campus.
Last year, former higher education minister Blade Nzimande urged the department to give Educor time to phase out pipeline students while also insisting that the company reimburse students where appropriate.
Educor was also accused of misrepresenting student numbers, claiming to have 50,000 students enrolled when the actual figure was reportedly 13,096.
“There is no credible evidence to suggest the management of Educor is working to improve or correct some of the governance and compliance failures I have referred to,” Nzimande said at the time.
“What we are seeing instead are students and staff being left stranded, and we urge the affected staff to seek the assistance of the Labour Court and the Commission for Conciliation, Mediation and Arbitration.
“Under these circumstances and with the information at our disposal, it would be unconscionable to maintain the registration status of these private institutions and allow ourselves to become complicit in gross governance and compliance failures,” said Nzimande.
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