Major South African university accused of spending R500,000 for gala dinner with the President

South Africa’s largest university recently came under fire for spending over R570,000 to attend a gala dinner with President Cyril Ramaphosa.

The Department of Higher Education and Training is now investigating this incident at the University of South Africa (Unisa) following reports that the whistleblower involved was suspended or dismissed.

Higher Education Minister Dr Nobuhle Nkabane recently revealed this in response to a Parliamentary question from EFF MP Sihle Lonzi.

Lonzi asked the minister what progress had been made in investigating allegations that top officials at Unisa spent R500,000 to attend a gala dinner with the President.

This came after several reports, originating from a whistleblower who had previously worked at the university, alleged that the university council, including vice-chancellor Professor Puleng LenkaBula, paid for a seat next to the President at a gala in December 2024.

In her response, Nkabane said the university furnished her department with a report outlining the spending related to this event, which totalled R577,002.

The university spent the majority of this figure, R495,452, for 25 people at The President Hotel in Cape Town. The minister said this cost included accommodation, dinner, a conference package, and shuttle costs.

The remaining funds were spent on accommodation at three different hotels: Sea Star Cliff, Sea Star Lodge, and Benguela, all located in Gansbaai. 

The minister explained that there was no accommodation at Cape Agulhas, which is why accommodation had to be secured in Gansbaai.

Nkabane added that details about the costs for flights and car rentals are not yet available, and this information is being requested from the relevant travel agents.

“After studying the report, the department saw no need to investigate further as full disclosure was provided,” the minister said. 

“However, the department recently learned that the whistleblower was suspended/dismissed. Further investigations will be conducted in this regard.”

This came after City Press reported that the whistleblower tied to this incident – Donald Ndlovu, a senior official at the university’s finance department – was suspended in April for allegedly downloading the proof of payment related to this trip.

South African graduates paying the price

These allegations regarding Unisa’s spending come as South African universities face increased scrutiny amid the country’s youth unemployment crisis.

The Organisation for Economic Co-operation and Development (OECD) recently outlined some of the main reasons behind South Africa’s high unemployment rate.

The organisation explained that part of the reason for high unemployment, especially among the youth, is the mismatch between graduates’ qualifications and the skills required in the workplace.

A significant part of this mismatch is attributed to South Africa’s higher education institutions, many of which face substantial challenges, including high fees and inadequate infrastructure.

“The labour market is characterised by persistent mismatches between workers’ qualifications, fields of study and the available jobs,” the OECD explained.

“Skills shortages mainly result from a lack of quality education. Despite significant progress in recent decades, educational outcomes in South Africa are low and unequal.” 

Specifically, the organisation said there are inadequacies in technical and vocational education and training (TVET) in South Africa.

An important issue is the system’s exclusionary admission criteria, its failure to align with the skills demanded by the labour market and a lack of cohesive coordination across programmes. 

In addition, the OECD said more teachers with real-world industry experience and greater use of internships and work placements would better prepare students for the demands of the job market. 

“Making progress in this area will help support a better integration of young people as well as labour market outcomes,” it said.

The organisation further explained that the supply of graduates is severely constrained by the lack of university infrastructure and the high cost per student.

One reason for the high fees is that public subsidies for low-income students are proportional to tuition fees, creating incentives for universities to set high fees. 

However, the number of students who qualify for subsidies is higher than the number of seats the Ministry budgets for. 

“Formula-based financing, where universities compete for public funding based on a previously determined formula, could reduce the cost per student and allow more students to be enrolled and incentivise universities to increase infrastructure,” the OECD suggested.