The Final Bell? Government Moves to Shut Down Damelin, City Varsity, and ICESA

In a landmark decision that could reshape South Africa’s private education landscape, Higher Education Minister Buti Manamela has taken the first formal step to cancel the registration of three major institutions: Damelin, City Varsity, and ICESA City Campus.

This isn’t a sudden move, but the culmination of what the Department of Higher Education calls a “prolonged pattern of non-compliance.” For years, these colleges, all under the troubled Educor Holdings umbrella, have been on the radar for regulatory breaches, student complaints, and governance failures. Now, the state is pulling the plug.

A Decision Built on “Gross Failures”

According to department spokesperson Matshepo Seedat, the decision is rooted in a fundamental failure to meet legal obligations. The core issue: the institutions repeatedly failed to submit their mandatory annual reports, even after multiple deadline extensions into 2025.

But the problems ran deeper. The department states they also could not prove their financial or operational sustainability, lacking audited statements, tax certificates, and safety compliance documents. Crucially, it was confirmed that City Varsity and ICESA City Campus have already ceased operations, leaving students stranded.

“Institutions that fail to meet their legal and educational obligations cannot be allowed to compromise the futures of the people they serve,” the department stated, echoing former Minister Blade Nzimande’s 2024 warning that it would be “unconscionable” to remain complicit in these failures.

A Long Time Coming for Students and Staff

For many former students, this action feels overdue. Complaints about poor-quality education, unfulfilled promises, and administrative chaos at Damelin, in particular, date back years. In 2021, authorities already considered stripping accreditation from some of its programmes.

The crisis also highlights the human cost. Staff have been left unpaid and studentsmany of whom took out loanswere left in academic limbo. Last year, Educor was accused of massively inflating its student numbers, claiming 50,000 enrolments when the true figure was reportedly closer to 13,000.

What Happens Next for Affected Students?

The notice of intent will be gazetted, formally starting the process. The institutions will have a final chance to make representations, but the department’s stance appears firm.

For current and recent students, the pressing question is about their futures. The department has pledged to “ensure that students affected by this process are supported through appropriate academic and administrative arrangements.” Details are yet to be announced, but this likely involves facilitating transfers to compliant institutions or managing credit recognitiona massive administrative undertaking.

This move sends a unequivocal message: the era of lax oversight in private higher education is over. The government is drawing a hard line on quality and integrity, choosing to protect the sector’s credibility even if it means closing down well-known, but faltering, brands. For thousands of students caught in the middle, the hope is that this painful closure leads to a more secure and trustworthy system for those who come next.