Financial chaos and legal breaches push three private colleges towards shutdown.
Image: Damelin
The Department of Higher Education and Training has issued a Notice of Intent to cancel the registration of three private higher education institutions, citing a prolonged pattern of non-compliance with the Higher Education Act (No. 101 of 1997).
City Varsity (Pty) Ltd, Damelin (Pty) Ltd, and ICESA City Campus (Pty) Ltd now face potential deregistration after failing to meet critical regulatory requirements, the Department confirmed.
“The decision to issue the Notice of Intent to Cancel is taken in the interest of protecting students and upholding the integrity of the sector," said spokesperson Matshepo Seedat.
The Department highlighted repeated failures by the institutions to submit complete statutory Annual Reports, despite being granted extensions, including a final remedial deadline of 6 June 2025.
Seedat emphasised that the Department is acting against institutions unable to demonstrate financial and operational sustainability.
"Institutions that fail to meet their legal and educational obligations cannot be allowed to compromise the futures of the people they serve."
Required documentation that was not submitted includes audited financial statements, proof of financial guarantees, Sars tax compliance certificates, and occupational health and safety compliance records.
Further raising concern, the Department received confirmation that two of the institutions, City Varsity and ICESA City Campus, have ceased operations entirely, effectively failing to provide higher education under the meaning of the Act.
“The Department remains unequivocally committed to protecting students from being enrolled in institutions that cannot demonstrate financial and operational sustainability," Seedat added.
The Notice of Intent will be published in the Government Gazette in line with Section 63(a) of the Higher Education Act. Affected institutions will have the opportunity to make representations, while students will be supported through appropriate academic and administrative arrangements.
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